Officially, Bank Indonesia Continues Reference Interest Rate Of 3.50 Percent

JAKARTA - Bank Indonesia (BI) has set the extension of the BI 7-Day Reverse Repo Rate (BI7DRR) interest rate to remain at 3.50 percent. Likewise with the deposit facility interest rate which did not move from the level of 2.75 percent, and the lending facility interest rate of 4.25 percent.

BI Governor Perry Warjiyo said this decision was taken after his party held a Board of Governors Meeting (RDB) in the middle of this week.

"This decision is in line with the stability of the exchange rate and controlled inflation as well as efforts to continue to encourage economic growth in the midst of increasing external pressure," he said when holding a virtual press conference, Thursday, February 10.

According to Perry, Bank Indonesia will also continue to optimize the policy mix to maintain stability and support further national economic recovery.

"These steps that will be taken include strengthening the rupiah to maintain exchange rate stability in line with market mechanisms and economic fundamentals," he said.

For information, the BI rate of 3.50 percent is the lowest level in history as a response to the pressure caused by the COVID-19 pandemic. In VOI records, the 3.50 percent interest rate has been in effect since 2020 with gradual cuts of 150 basis points in six declines.

Recently, the signal for an increase in interest rates has continued to strengthen in line with the economic recovery that has begun to return to normal levels.