Insurance Agency To Cut Deposit Rate

Source: The Jakarta Post (12-02-2007)

JAKARTA: Indonesia's deposit insurance agency will cut its maximum guaranteed interest rate on rupiahdenominated deposits by a quarter of a percentage point.

The agency, Lembaga Penjamin Simpanan, which guarantees deposits at banks in the Southeast Asian nation, plans to lower the rate to 9.25 percent for the period between Feb. 15 and March 14, Krisna Wijaya, executive head of the agency, said in a mobilephone text message today.

The "macro economy, inflation rate and exchange rate" of the rupiah against the U.S. dollar are "stable," Wijaya said. The stateowned agency will maintain its maximum dollar guaranteed deposit rate for the period at 4.75 percent.

Indonesia's central bank cut its benchmark interest rate to' a 17-month low of 9.25 percent last week, the ninth reduction since May, to spur growth as inflation slows.Bloomberg