BI Decides To Maintain BI Rate At Level 6.25 Percent

RDG BI August 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 step to be consistent with the focus of prostability monetary policy.

"The Meeting of the Board of Governors (RDG) of Bank Indonesia on August 20-21, 2024 decided to maintain the BI-Rate by 6.25 percent," Perry said at a press conference, Wednesday, August 21.

Perry said that he decided to further strengthen the stabilization of the rupiah exchange rate and as a pre-emptive and forward looking step to ensure that inflation remains under control within the target of 2.5 percent plus minus 1 percent in 2024 and 2025 in line with the pro-stability monetary policy stance.

Perry said that the focus of monetary policy in the short term was directed to strengthen this policy, supported by strengthening monetary operations to strengthen the effectiveness of stabilizing the Rupiah exchange rate and attracting foreign portfolio inflows.

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, the payment system policy is 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 amid the continued risks and uncertainties of the global financial market," he concluded.