Bank Indonesia Maintains Reference Interest Rate Of 3.5 Percent In The Last Four Months

Illustration (Photo: Doc. Bank Indonesia)

JAKARTA - Bank Indonesia (BI) has again decided to maintain the BI 7-Day Reverse Repo Rate (BI7DRR) at 3.50 percent.

In addition, the monetary authority also chose not to renew the deposit facility interest rate of 2.75 percent and the lending facility interest rate of 4.25 percent.

BI Governor Perry Warjiyo said that this attitude was taken by taking into account macroeconomic conditions both domestically and globally.

"This decision is consistent with inflation that remains low and the stability of the rupiah exchange rate is maintained and supports efforts to recover the national economy", he said in a virtual press conference after holding a Board of Governors' Meeting (BI) on Thursday, June 17.

Perry added that the central bank will continue to strengthen synergies with the government through the Financial System Stability Committee (KSSK).

"This is intended to encourage lending and financing to the business world, as well as to reduce bank lending rates", he said.

The central bank's move to not change the interest rate has occurred in the past four months. Meanwhile, the last cut occurred in February when BI lowered its benchmark interest rate by 25 basis points (BPS) from 3.75 percent to 3.50 percent.

"With this policy direction, Bank Indonesia will continue to take an accommodative macroprudential stance to ensure that the stability of the domestic monetary system can be maintained by maintaining synergy with the government and relevant authorities", concluded Perry.