0 Universal Plenty Central Bank Interest Rate Lower limit hike

Universal Plenty Central Bank Interest Rate Lower limit hike

G20 countries urged the central bank in the world continues its policy of lowering interest rates to encourage credit growth amid the current global economic crisis.

This was said by the Head of Fiscal Policy Anggito Abimanyu when met at his office, Wahidin Jalan Raya, Jakarta.

"In summary the G20 summit in London, said monetary policy should continue its rate cut if possible and encourage lending," he said.

Bank Indonesia alone this time also continue to decline in BI Rate is now at the level of 7.75% to lead to a reduction in bank lending rates.

"In the G20 communique said the central bank will be incorporated in the G20 to maintain a monetary policy easing to use all monetary instruments that exist," he explained.

The G20 meeting itself was attended by the Ministers of Finance and Central Bank Governors of the G20 countries. G20 agreement was the result of the initial meeting of finance ministers and central bank on March 14, 2009 in Horsham, London. G20 summit will be held 2 April which will be attended by several heads of state.

Members of the G20 countries are the United States, Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Britain, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, and the European Union.

IMF

While Mankeu Sri Mulyani said in a press conference at the presidential office said of the meeting of the G20 communique though not explicitly mentioned, but there is a commitment to increase resources or funds such as the IMF, World Bank and ADB to help overcome the difficulties many countries due to the crisis.

"Well how much money, which has already appeared or which is complete agreement that ADB earn 200% increase of capital. ADB Once approved, the Inter-American Development Bank was why I did not dinaikkin. U.S. So the finance minister asked that they also called but they are still in the very early stages. based ADB if it takes long to be able to get, "said the minister.

Minister explained the increase ADB funding could add U.S. $ 15 billion in additional lending capacity. As for the IMF also approved to be increased to U.S. $ 500 billion, so now its capacity to 2-fold. IMF funds is mainly to cover the eastern European countries in crisis.

"But many countries now face the consequences of this crisis are so incredibly and now extends. So like the World Bank, World Bank President Robert Zoellick said in a speech that trade facility, the second is the vulnerability facility," he explained.

Minister explained to countries with low income countries the crisis is good for overseas development assistancenya drops or tba exports plunged suddenly will cause soaring poverty.

"So Robert Zoellick proposed facility made additional facility vulnerability name," said the minister.