Jamwaktu.com – Monetary policy has once again become a major focus in the financial world after the central bank officially cut its benchmark interest rate for the third time this year. This latest cut not only marks a further step in efforts to promote economic stability but also represents the biggest difference compared to the previous two cuts. Unsurprisingly, this decision immediately drew the attention of financial market players, who are looking for a direction for the economy going forward.
In a press conference held yesterday, the central bank governor emphasized that this easing policy was implemented in response to weakening global and domestic economic activity. Several indicators, such as declining purchasing power, a slowdown in the manufacturing industry, and an export market that has not yet fully recovered, provide strong reasons for the central bank to take aggressive action to maintain growth momentum.
This interest rate cut is said to be the most significant in the past 12 months. While the previous two cuts were moderate, the central bank has now lowered interest rates more deeply to provide additional stimulus. This decision created a gap in interest rate movements that was immediately noticed by market players, particularly bond investors, banks, and the property sector, which are sensitive to changes in monetary policy.
In financial markets, the reaction was almost immediate. Government bonds rose as investors capitalized on the momentum of falling yields. Meanwhile, stock market movements were mixed. The property and construction sectors immediately recorded gains, driven by expectations of lower credit costs and increased demand for financing. On the other hand, banking stocks moved more cautiously, as net interest income could be pressured by the interest rate cut.
Economists from various research institutions stated that this policy demonstrates the central bank’s strong commitment to containing the impact of the economic slowdown. Lower interest rates are expected to stimulate consumption and investment activities. Lower-middle-income households are also expected to feel the impact through lower credit interest rates, including consumer loans and home ownership loans.
However, some economists also warned of potential risks. Aggressive interest rate cuts could depress the currency’s value, increase the potential for capital outflows, and even impact the stability of the financial sector if not accompanied by strict supervision. The central bank also emphasized that it remains open to further policy adjustments if economic conditions continue to change.
Global market players are also highlighting this move, especially since the trend of interest rate cuts is now occurring in several countries simultaneously. With global economic uncertainty still high, the central bank’s move is seen as a strategy to maintain economic competitiveness and ensure liquidity remains stable.
Overall, this third interest rate cut not only signals looser monetary policy but also a sign that the central bank wants to accelerate the recovery of economic activity. With the largest spread this year, all eyes are now on how the market will move in the coming weeks and what further steps the central bank might take. Market participants hope this policy will have a lasting positive effect and help strengthen economic stability amidst evolving challenges.
