Ahead Of Eid, BI Chooses To Maintain The Reference Interest Rate Of 5.75 Percent

BI Governor Perry Warjiyo (Photo: Capture BI Youtube screen)

JAKARTA - Bank Indonesia (BI) decided to maintain the BI 7-Day Reverse Repo Rate (BI7DRR) at 5.75 percent.

BI Governor Perry Warjiyo said the same decision also applies to the Deposit Facility interest rate at 5.00 percent and the Lending Facility interest rate at 6.50 percent.

"This decision is consistent with pre-emptive monetary policy, and forward looking to ensure the continued decline in inflation in the future," he said during a press conference in Jakarta on Tuesday, April 18.

According to Perry, Bank Indonesia believes that the BI 7-Day Reverse Repo Rate of 5.75 percent is sufficient to keep core inflation under control.

"The core inflation will be directed at 3 percent plus minus 1 percent in the remaining 2023 and inflation based on the Consumer Price Index (JCI) will return to the target of 3 percent plus minus 1 percent earlier than previously estimated (second semester II 2023)," he said.

Perry added that the central bank will also strengthen the policy of stabilizing the rupiah exchange rate by controlling imported goods inflation (imported inflation).

"BI will also mitigate the impact of the global financial market uncertainty on the rupiah exchange rate," he said.

In this regard, continued Perry, Bank Indonesia will continue to strengthen the response of the policy mix with the government.

"This is intended to be able to boost national economic growth," he said.

VOI noted that BI's stance on maintaining this benchmark interest rate was the third time after the first occurred at the beginning of this year.