Indonesia’s move to cut rates fails to lift consumer spending


JAKARTA: A cut in interest rates by Indonesia’s central bank may not be enough to give sluggish consumer spending a jolt, as weakness in purchasing power and a reluctance by banks to lend undercuts efforts to boost South-East Asia’s biggest economy.

Bank Indonesia (BI) on Tuesday unexpectedly cut its benchmark policy rate for the first time since October, bringing the rate down 25 basis points to 4.5%.

Win a prize this Mother's Day by subscribing to our annual plan now! T&C applies.

Monthly Plan

RM13.90/month

Annual Plan

RM12.33/month

Billed as RM148.00/year

1 month

Free Trial

For new subscribers only


Cancel anytime. No ads. Auto-renewal. Unlimited access to the web and app. Personalised features. Members rewards.
Follow us on our official WhatsApp channel for breaking news alerts and key updates!

Business , Indonesia , interest rate , economy

   

Next In Business News

Wall Street set for higher open as rate-cut hopes linger
Shell in talks to sell Malaysia fuel stations to Saudi Aramco, sources say
Court Of Appeal rules in favour of SC in insider trading case
EPF buys more shares in QL Resources, raising stake to 5.01%
MGRC and Twistcode Technologies collaborate to develop advanced bioinformatics platform
Ringgit trims earlier gains to end slightly lower against US dollar
Ho Hup disposes of Bukit Jalil land for RM110mil
Perodua eyes 79% export surge to 1,960 units this year
Favelle Falco secures RM39.2mil contracts for offshore, tower cranes
RHB Islamic International Asset Management appoints Najman Isa as CEO

Others Also Read