Support Economic Elections, Bank Indonesia Maintains Benchmark Interest Rate Of 3.50 Percent

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

JAKARTA - Bank Indonesia (BI) officially maintains the bi 7-Day Reverse Repo Rate (BI7DRR) at 3.50 percent.

This information was conveyed directly by BI Governor, Perry Warjiyo, in a virtual press conference after holding a meeting of the Board of Governors of Bank Indonesia.

Furthermore, monetary authorities also chose not to change the deposit facility rate of 2.75 percent, and the lending facility rate of 4.25 percent.

"This decision is consistent with the low inflation rate, as well as rupiah exchange rate stability, and also supports economic recovery efforts this year", said the Governor of BI on Tuesday, May 25.

According to Perry, the decision of the monetary authority to maintain interest rates in the last three months also pays attention to economic indicators that show continue to improve. For example, consumer expectations, retail sales, manufacturing PMI (Purchasing Managers Index), and the realization of exports and imports continue to increase.

"Bank Indonesia will strengthen policy synergy with the government and the Financial System Stability Committee (KSSK) including the implementation of an integrated policy package to accelerate national economic recovery", he said.

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In VOI records, the last interest rate adjustment made by the central bank occurred in February 2021. At that time, BI cut interest rates by 25 basis points (BPS) from 3.75 percent to 3.50 percent.

In addition, the central bank called Perry will make strategic efforts with related parties to encourage the reduction of bank lending rates and increase financing distribution to businesses including the MSME sector.

"Bank Indonesia will continue to implement an accommodative macroprudential policy mix to support domestic economic activity", Perry concluded.