BI Keeps Reference Interest Rate, Rupiah Is Even Closed Down

Illustration. (Photo: Bank Indonesia)

JAKARTA - The rupiah exchange rate on the spot market has closed lower against the United States dollar (US). On Tuesday April 14, the rupiah closed down 0.10 percent or 15 points to Rp15,645 per US dollar.

The rupiah weakened when the Board of Governors Meeting of Bank Indonesia (BI) decided to hold the benchmark interest rate, 7 Days Reverse Repo Rate, at 4.50 percent.

Despite holding back interest rates, BI emphasized that monetary policy will remain accommodative and consistent with the forecast for controlled inflation within the target range and as a measure to maintain economic growth momentum.

This decision is in line with BI Governor Perry Warjiyo's statement last week. Perry said the current priority is stabilizing the rupiah exchange rate.

"Our priority is the stability of the rupiah exchange rate even though there is room for a reduction in interest rates," said Perry.

Perry stated that BI would be very careful in its policy to reduce the benchmark interest rate. The reason is, BI also still has to maintain the momentum of economic growth.

This afternoon, the rupiah weakened along with several other Asian currencies such as the Malaysian ringgit which weakened 0.16 percent, the Thai baht fell 0.06 percent, the Philippine peso fell 0.04 percent, the Singapore dollar weakened 0.02 percent against the US dollar.