Again, Bank Indonesia Maintains Reference Interest Rate Of 5.75 Percent

Illustration (Photo: Doc. Antara)

JAKARTA - Bank Indonesia (BI) decided to maintain the benchmark 7-Day Reverse Repo Rate (BI7DRR) at 5.75 percent.

BI Governor Perry Warjiyo said the same thing was also set for deposit facilities and lending facility interest rates which did not shift from 5.00 percent and 6.50 percent.

"The decision to maintain the BI 7-Day Reverse Repo Rate by 5.75 percent is consistent with the monetary policy stand to ensure inflation remains under control within the target range of 3 percent plus minus 1 percent in the remainder of 2023," he said during a press conference in Jakarta on Thursday, June 22.

According to Perry, the attitude taken by BI is also based on efforts to provide a strong basis for achieving inflation in the following year.

"The current policy focus is directed at strengthening the stability of the rupiah exchange rate to control the inflation of imported inflation and mitigation of the impact of the increase in global financial market uncertainty," he said.

Perry added, on the other hand, loose liquidity and macroprudential policies continue.

"This is useful to encourage lending/financing and maintain financial system stability," said Perry.

VOI noted that the central bank's move to maintain the BI rate had occurred for five consecutive months. Meanwhile, the last time Bank Indonesia raised interest rates was in January 2023 at 25 basis points (bps) from 5.50 percent to 5.75 percent.