Record Continues, Bank Indonesia Maintains Reference Interest Rate Of 3.50 Percent

Bank Indonesia Governor Perry Warjiyo (Photo: Screenshot of BI's virtual channel)

JAKARTA - Bank Indonesia (BI) has officially maintained the BI 7-Day Reverse Repo Rate (BI7DRR) benchmark interest rate 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 based on the results of the Board of Governors Meeting (RDG) which took place from 23 to 24 May 2022.

"Decided to maintain the BI 7-Day Reverse Repo Rate at 3.50 percent," he told the media crew through a virtual channel on Tuesday, May 24.

According to Perry, the basic assumptions that serve as the basis for setting the benchmark interest rate are controlled inflation and efforts to maintain the stability of the rupiah exchange rate.

"This is also a step to encourage economic growth in the midst of external pressures related to Russia-Ukraine geopolitics," he said.

Not only that, the continued trend of low interest rates will accelerate the normalization of monetary policy, especially in response to central bank policies in developed countries.

"In line with this, Bank Indonesia is taking steps to strengthen the policy mix with the government," he stressed.

For information, the BI rate of 3.50 percent is the lowest interest rate level in history in response to anticipating the impact of the COVID-19 pandemic.