BI Signal, Interest Rate 5.75 Percent Will Be Maintained Until The End Of The Year

BI Governor Perry Warjiyo (Photo: Doc. Antara)

JAKARTA Bank Indonesia (BI) stated that the policy direction in the future will be focused on maintaining the stability of the rupiah exchange rate and encouraging growth.

BI Governor Perry Warjiyo revealed that in monetary policy, the central bank views the current interest rate as sufficient.

"We are still directing monetary policy for pro-stability. We maintain the BI rate of 5.75 percent because global mitigation is still uncertain, so we focus on the stability of the rupiah exchange rate," he said while attending a working meeting with Commission XI of the DPR, Thursday, August 31.

According to Perry, the steps to maintain BI7DDR at the level of 5.75 percent are also to ensure inflation remains under control in the range of 3 percent plus minus 1 percent in the remainder of 2023 and 2.5 percent plus minus 1 percent in 2024.

"Bank Indonesia will also intervene in the foreign exchange market with a focus on spot transactions and non-deliverable forward (DNDF) domestic loans," he said.

Then also the issuance of SRBI as a pro-market instrument in order to strengthen market deepening efforts that can attract investors and capital flows.

"This is done by optimizing the SBN owned by Bank Indonesia as its underlying," said Perry.

VOI noted, BI has maintained a benchmark interest rate of 5.75 percent for seven 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.