Bank Indonesia to inject $4.8bn into country’s economy
Cut to liquidity buffer amid slowing growth aims to give banks greater flexibility in managing funds
Indonesia’s central bank is to inject $4.8 billion into the country’s economy by loosening one of its liquidity buffers, the institution’s head of macro-prudential policy has said.
At a press conference yesterday (May 26), Solikin Juhro said Bank Indonesia (BI) would reduce the “secondary reserve requirement” ratio from 5% to 4% from June 1.
The macro-prudential liquidity buffer requires banks to hold a minimum percentage of their funds in the form of liquid assets, such as Indonesia government
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