Bank Indonesia Keeps Reference Interest Rate Fixed at 3.50 Percent, BI Rate Record Continues

Ilustrasi (Foto: Dok. VOI)

JAKARTA - Bank Indonesia (BI) maintains the benchmark BI 7-Day Reverse Repo Rate at 3.50 percent. Likewise, the deposit facility and lending facility rates did not move at 2.75 percent and 4.25 percent, respectively.

BI Governor Perry Warjiyo said the policy was in line with efforts to maintain exchange rate stability and the financial system, amid low inflation forecasts and efforts to support economic growth.

"Bank Indonesia continues to optimize the entire policy mix to maintain the macroeconomic and financial system stability and support further economic improvement efforts," he said in a virtual press conference after the Board of Governors' Meeting (RDG) earlier this week, Tuesday, October 19.

According to Perry, there are also several considerations that influence BI not to change the benchmark interest rate rule, among others, to strengthen the effectiveness of the accommodative monetary policy stance.

"Bank Indonesia continues to synergize with the government and the Financial System Stability Committee (KSSK) in order to maintain the financial system stability and increase credit and financing to the business world to encourage economic growth, exports, and economic and financial inclusion," he said.

For information, the benchmark interest rate of 3.50 percent is the lowest level in the history of setting the BI rate. This is intended as support for economic recovery in the midst of the COVID-19 pandemic situation.

VOI noted that the trend of sloping interest rates has been going on since last year with cuts amounting to 150 basis points in six declines.