There Is A Risk Of Stagflation, Bank Indonesia Chooses To Maintain The Benchmark Interest Rate Of 3.50 Percent

JAKARTA - Bank Indonesia (BI) has decided to keep the benchmark BI 7-Day Reverse Repo Rate (BI7DRR) at 3.50 percent. Likewise, the deposit facility interest rate is still at 2.75 percent and the lending facility interest rate is 4.25 percent.

BI Governor Perry Warjiyo said this step was in line with the need to control inflation and maintain rupiah exchange rate stability.

"And by continuing to support national economic growth in the midst of increasing external pressure related to the risk of stagflation in various countries," he said through a virtual channel on Thursday, June 23.

According to Perry, the projected global economic uncertainty will remain high in line with the increasing opportunities for slowing growth and rising global inflation.

"Including from the increasingly widespread protectionism policies, especially food taken by various countries," he said.

To note, the BI rate of 3.50 percent is the lowest number in history and has been in effect since 2020 to cope with the pressure of the pandemic on the economic sector.

"For this reason, Bank Indonesia will continue to strengthen the policy mix with the government and other relevant agencies," concluded BI Governor Perry Warjiyo.