BI Reveals There Is Potential For Lowering Interest Rates In The Remaining End Of 2024

Governor of Bank Indonesia Perry Warjiyo. (Photo: Doc. ANTARA)

JAKARTA - Bank Indonesia (BI) revealed that there is an opportunity to reduce the benchmark interest rate or BI Rate at the remainder of the end of 2024.

Bank Indonesia Governor Perry Warjiyo conveyed that sentiment that would affect BI's interest rate policies such as the condition of the rupiah exchange rate, economic growth, and inflation.

"Is there still an open space for lower interest rates? Yes, still, with low inflation and economic growth," he said at a press conference, Wednesday, November 20.

For information, BI decided to maintain the benchmark interest rate or BI rate at the level of 6 percent at the BI Board of Governors Meeting (RDG) 19-20 November 2024.

According to Perry, the decline in BI-Rate will also consider the development of global dynamics which is currently very fast.

In addition, his party's focus is also on monetary policy directed to strengthen the stability of the rupiah exchange rate from the impact of the increasing uncertainty in geopoliticals and global economics, with political developments in the US.

"In the future, regarding the BI interest rate, we will continue to pay attention to the movement of the rupiah exchange rate and the prospects for inflation as well as the development of data and dynamics of conditions that continue to develop in observing the space for lowering the BI rate policy interest rate further," he said.

Therefore, Perry said that with this potential there is still room for a decrease in the BI rate in the rest of the year.

"So it's still open, but of course it will really depend on this. With the previous room, the room was a bit wide, now it's more limited. But the patience is more. While we look at it first, but the focus is on maintaining the stability of the rupiah exchange rate," he explained.