The Fed Maintained Interest Rate Near Zero






  • The Federal Reserve held interest rates steady in a decision announced
    Wednesday that came along with a tepid outlook on the coronavirus-plagued
    economy. In a move widely expected, the central bank kept its benchmark
    overnight lending rate anchored near zero, where it has been since March 15 in
    the early days of the pandemic. Along with keeping rates low, the Federal Open
    Market Committee, which sets monetary policy, expressed its commitment to
    maintaining its bond purchases and the array of lending and liquidity programs also
    associated with the virus response. (CNBC)
  • The Government guarantees working capital loans provided by banks to private
    corporations with a credit ceiling of Rp10 billion to Rp1 trillion. Until next year,
    working capital loans given by banks through the program are targeted to reach
    Rp100 trillion. Under this program, the government will guarantee 60% of working
    capital loans (the remaining 40% will be guaranteed by banks) for corporations in
    the non-priority sector. Meanwhile, priority sectors will get 80% guarantee from
    the government, while the other 20% will be guaranteed by the banking sector.
    (Investor ID)

Source: Danareksa Sekuritas Debt Research

Photo by Scott Webb on Unsplash