7 Years Use 7 Days Reverse Repo Rate, Bank Indonesia Again Uses The Term BI Rate

Bank Indonesia (photo: dock. Antara)

JAKARTA - Bank Indonesia (BI) announced the change in the name of the policy interest rate, namely from BI 7 Day Reverse Repo Rate (BI-7DRR) to BI-Rate in the Decree of the Board of Governors' Meeting (RDG), Thursday 21 December 2023

BI Governor Perry Warjiyo revealed that the use of the BI-Rate term will be on December 21, 2023.

"As of December 21, 2023, BI uses the name BI-Rate as a policy interest rate," Perry said at a press conference, Thursday, December 21.

Perry revealed that the change in the term BI-Rate as the policy interest rate replaced BI 7 Day Reverse Repo Rate to strengthen monetary policy communication.

Perry emphasized that the name change did not change the meaning and purpose of the policy interest rate as BI's monetary policy stance.

Perry explained that changing the term policy interest rate will not change the meaning and purpose of the BI Rate. And, the operationalization will refer to the seven-day reverse repo tenor transaction.

"This name change does not change the meaning and purpose of the BI Rate as BI's monetary policy stance, and operations still refer to the BI tenor reverse repo transaction for 7 days," said Perry.

In addition, today BI decided to maintain the policy interest rate at the level of 6.00 percent and hold the deposit facility interest rate at the level of 5.25 percent and the lending facility interest rate at the level of 6.75 percent.

As is known, Bank Indonesia is strengthening the framework of monetary operations by implementing a reference interest rate or new policy interest rate, namely the BI-7 Day Reverse Repo Rate (BI7DRR) which has been effective since August 19, 2016, replacing the BI Rate.