Eye on economic recovery, BI holds benchmark rate at 3.5pct

18-Jun-2021 Intellasia | AntaraNews | 5:02 AM Print This Post

During a meeting on Thursday, Bank Indonesia’s board of governors decided to leave the BI Seven-Day Reverse Repo Rate (BI7DRRR) unchanged at a record low of 3.5 percent. “The decision is consistent with the low inflation forecast and efforts to maintain the rupiah’s stable exchange rate and boost national economic recovery,” Bank Indonesia (BI) Governor Perry Warjiyo said at an online press conference here on Thursday.

He assured that the central bank will make optimum use of the monetary and accommodative micro-prudential policy mix and accelerate payment system digitalisation to support economic recovery efforts.

During the two-day meeting ended Thursday, BI also decided to maintain the deposit facility rate at 2.75 percent and the fixed-ending facility rate at 4.25 percent.

BI has kept its benchmark rate at 3.5 percent at three consecutive meetings on March 17-18, April 19-20, and May 24-25 this year.

The central bank had lowered the benchmark rate by 25 basis points to 3.5 percent from 3.75 percent during a meeting held on February 17-18, 2021.

Since last year until February this year, the bank has lowered its benchmark rate by a total of 150 basis points.



Category: Indonesia

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