Indonesia central bank sees 2016 GDP growth at 5.4%
Bank Indonesia Deputy Governor Perry Warjiyo said the country's economic growth may reach 5.4 percent this year, accelerating from 4.8 percent last year, after the central bank cut its main interest rate 50 basis points in the first two months of 2016.
It also cut banks' statutory reserve requirement ratio by 100 basis points to 6.5 percent. Warjiyo said this would give banks Rp 34 trillion ($2.53 billion) of fresh liquidity, which they can channel into loans.
The central bank expects loan growth at the end of this year at 14 percent, helped with policy loosening, quickening from 2015's loan growth pace of 10.5 percent.