Bank Indonesia Cut BI7DRR by 25 bps to 4.0%

The Bank Indonesia Board of Governors’ Meeting (RDG) on 15-16 July 2020 decided to reduce the BI 7-Day Reverse Repo Rate (BI7DRR) by 25 bps to 4.00%, the Deposit Facility interest rate by 25 bps to 3.25%, and Lending Facility interest rate of 25 bps to 4.75%. This decision is consistent with low inflation forecast, maintained external stability, and as a further step to encourage economic recovery in the COVID-19 pandemic. (Bank Indonesia)

The Chinese economy returned to growth in the second quarter, marking an important milestone in the global struggle to climb out of the slump brought about by the coronavirus. Gross domestic product expanded 3.2% in the three months to June from a year ago, reversing a 6.8% decline in the first quarter and beating the median forecast of 2.4%. However, the economy is still 1.6% smaller than at the end of the first half in 2019. (Bloomberg)

Source: Danareksa Sekuritas Debt Research

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