JAKARTA - Bank Indonesia (BI) has decided to maintain the benchmark interest rate or the 7-Day Reverse Repo Rate (BI7DRR) at 6.00%, the Deposit Facility interest rate at 5.25%, and the Lending Facility interest rate at 6.75%. The decision was made at the BI Board of Governors' Meeting on June 19-20, 2019.
To increase the availability of banking liquidity in financing the economy, BI alsoo decided to lower the Rupiah Statutory Reserves (GWM) for Conventional Commercial Banks and Islamic Commercial Banks or Sharia Business Units (UUS) by 50 basis points (bps) to 6.0% and 4.5% with each GWM Average remaining at 3.0% as of July 1, 2019.
"Bank Indonesia continues to observe the condition of global financial markets and the external stability of the Indonesian economy in considering a reduction in policy rates in line with low inflation and the need to encourage domestic economic growth," BI Governor Perry Warjiyo said in a press conference at the BI headquarters, Thursday (20/6).
"The strategy of monetary operations is still directed at ensuring the availability of liquidity on the money market. Macroprudential policies also remain accommodative to encourage bank lending and expand financing for the economy. "
In addition, added Mr Warjiyo, payment system policies and financial market deepening are also being strengthened to support economic growth. BI also continues to improve coordination with the government and related authorities to maintain economic stability, boost domestic demand, and increase exports, tourism and foreign capital inflows. (MS)