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Difficult to slash Indonesia’s benchmark interest rate: World Bank
Difficult to slash Indonesia’s benchmark interest rate: World Bank
MONDAY, 20 JUNE 2016 – Despite the recent moderate inflation in Indonesia, cutting the benchmark interest rate is not an easy task due to banking market structure, geographical constraint and low financial inclusion, according to The World Bank.
World Bank lead economist Ndiame Diop said the net interest margin in Indonesia was currently sitting at five percent, above the nation’s regional peers which average below four percent.