BI Again Decides To Maintain Reference Interest Rate 6 Percent

JAKARTA - Bank Indonesia (BI) decided to maintain the benchmark interest rate (BI-Rate) at the level of 6 percent at the Board of Governors' Meeting (RDG) which will take place on 19-20 March 2024.

In addition, BI also withheld deposit facility interest rates and lending facility rates so that they remained at 5.25 percent and 6.75 percent.

BI Governor Perry Warjiyo said he decided to maintain the benchmark interest rate at 6 percent as a pro-stability monetary policy consistency.

"The Meeting of the Board of Governors (RDG) of Bank Indonesia on 19-20 March 2024 decided to maintain the BI rate of 6 percent," Perry said at a press conference, Wednesday, March 20, 2024.

Perry conveyed that the decision was consistent with the focus of a pro-stability monetary policy, namely to maintain the stability of the Rupiah exchange rate and pre-emptive and forward looking steps to ensure inflation remains under control in the 2.5 plus minus 1 percent target by 2024.

Meanwhile, Perry conveyed that macroprudential policies and payment systems remain pro-growth to support sustainable economic growth.

"Legal macroprudential policies continue to be pursued to encourage bank credit/financing to businesses and households," he said.

According to Perry, payment system policies are directed to continue to strengthen the reliability of the payment system's infrastructure and industrial structure, as well as expand the acceptance of payment system digitization.

"Bank Indonesia continues to strengthen the mix of monetary, macroprudential, and payment systems to maintain stability and support sustainable economic growth," he concluded.