Bank Indonesia Sets Reference Interest Rate To Stay At 3.50 Percent Level

Illustration (Photo: Doc. Antara)

JAKARTA - Bank Indonesia (BI) maintains its policy rate reference to remain at the level of 3.50 percent. The decision was conveyed by BI Governor Perry Warjiyo in a virtual press conference after holding a Board of Governors Meeting (RDG).

"Decided to maintain the BI 7-Day Reverse Repo Rate (BI7DRR) at 3.50 percent," he said on Tuesday, September 21.

Through this decree, the central bank did not change the interest rate after previously cutting 150 basis points (bps) in six declines since last year.

Furthermore, BI is still imposing a deposit facility interest rate of 2.75 percent and a lending facility interest rate of 4.25 percent.

"This decision is in line with the need to maintain exchange rate stability and the financial system, in the midst of low inflation forecasts and efforts to support economic growth," he said.

Perry added that Bank Indonesia will continue to optimize the entire policy mix to maintain the macroeconomic and financial system stability and support further economic improvement efforts.

Among other things, continuing the Rupiah exchange rate policy to maintain exchange rate stability in line with market fundamentals and mechanisms. Then, continue to strengthen the monetary operations strategy to strengthen the effectiveness of the accommodative monetary policy stance, as well as strengthen the policy of transparency of the basic lending rate (SBDK) by deepening the assessment of the transmission of new SBDK and SB Credit per type of credit based on bank groups," he explained.

"Bank Indonesia continues to strengthen policy synergies with the government and the Financial System Stability Committee (KSSK) in order to maintain the financial system stability and increase credit and financing to businesses in priority sectors to encourage economic growth, exports, and economic and financial inclusion," closed BI Governor Perry Warjiyo.