Bank Indonesia Keeps BI-Rate At 6.25 Percent

RDG BI May 2024 (Photo: Aris Nurjani/VOI)

JAKARTA - Bank Indonesia (BI) decided to maintain the benchmark interest rate or BI Rate at 6.25 percent. In addition, BI also maintains the deposit facility interest rate and lending facility interest rate at 5.50 percent and 7.0 percent, respectively.

BI Governor Perry Warjiyo said he decided to maintain the benchmark interest rate at the level of 6.25 percent as a prostability monetary consistency measure.

"The Meeting of the Board of Governors (RDG) of Bank Indonesia on May 21-22, 2024 decided to maintain the BI-Rate by 6.25 percent," Perry said at a press conference, Wednesday, May 22.

Perry said that maintaining this interest rate is to strengthen the stability of the Rupiah exchange rate from the impact of worsening global risks as well as pre-emptive and forward looking steps to ensure inflation remains under control in the target of 2.5 percent plus minus 1 percent in 2024 and 2025 in line with the pro-stability monetary policy spacing.

In addition, 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 strengthen the reliability of the payment system's infrastructure and industrial structure, as well as expand the acceptance of payment system digitization.

Perry said to maintain stability and support sustainable economic growth amid increasing uncertainty in global financial markets.

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