RTRS:Indonesia cuts max guaranteed rph, dollar deposit rates
Oct 12 (Reuters) - Indonesia's state deposit agency (LPS) lowered the maximum guaranteed rupiah deposit rate by 25 basis points to 7 percent, executive director Firdaus Djaelani said on Wednesday, after the central bank cut its overnight rate by 25 basis points on Tuesday to boost growth amid a global economic slowdown.
The LPS also lowered the maximum guaranteed dollar deposit rate by 75 basis points to 2 percent.
"The main reason for these cuts is because inflation is relatively low and banking liquidity remains sufficient, therefore bank deposit rates are expected to decline," said Djaelani.
Indonesian deposits that offer interest rates above those levels will not be guaranteed by the government. (Reporting by Adriana Nina Kusuma; Editing by Neil Chatterjee)
