Bank Indonesia Keeps Benchmark Rate at 4.25 Percent

• Nov 17, 2017

TEMPO.CO, Jakarta – Bank Indonesia (BI) has decided to keep BI 7-day Reverse Repo Rate unchanged at 4.24 percent, whereas the deposit facility rate and lending facility rate are also kept at 3.50 percent and 5.00 percent, effective from November 17.

“The decision is consistent with the efforts to maintain macroeconomic stability and financial system stability, as well as to boost economic growth while continue to keep an eye on the dynamics of both global and domestic economy,” Bank Indonesia Governor Agus Martowardojo told a press conference yesterday, Nov. 16.

Agus considered the current interest rates adequate to keep inflation target on track. Moreover, he claimed the current account deficit is healthy.

Meanwhile, domestic economy continues to grow with a more balanced economic structure. In addition, Agus explained, BI remains cautious of global risks in relation to the plan for stricter monetary policies in developed countries.

“As for domestic risks such as weak household consumption and bank intermediation, BI will continue to coordinate with the government,” he said.

The Bank Indonesia Governor explained that the coordination is aimed at enhancing policy mix in a bid to maintain macroeconomic stability, financial stability and push for structural reform to strengthen the fundamentals of the Indonesian economy.

Source: https://en.tempo.co/read/news/2017/11/17/056913312/Bank-Indonesia-Keeps-Benchmark-Rate-at-425-Percent