BI maintains BI 7-Day Reverse Repo Rate at 5.00%
JAKARTA - The Board of Governors' Meeting (RDG) of Bank Indonesia on December 18-19, 2019 decided to maintain BI 7-Day Reverse Repo Rate (BI7DRR) at 5.00%, the Deposit Facility interest rate at 4.25%, and the Lending Facility interest rate by 5.75%.
Monetary policy remains accommodative and consistent with controlled inflation forecasts within the target range, maintained external stability, and efforts to maintain the momentum of domestic economic growth amid a slowing global economy.
The monetary operations strategy continues to aim at maintaining adequate liquidity, especially at the turn of the year, and supporting the accommodative transmission of the policy mix. Meanwhile, accommodative macroprudential policies were taken to encourage economic financing in line with the financial cycle that was still below optimal while still observing the precautionary principle. Payment system policies and financial market deepening policies continue to be strengthened to support economic growth.
The response of the policy mix can maintain economic stability and sustain Indonesia's economic growth in mitigating global risks. Going forward, Bank Indonesia will pay close attention to developments in the global and domestic economy in utilizing an accommodative policy mix space to maintain controlled inflation and external stability, and also support the momentum of economic growth.
Bank Indonesia's coordination with the Government and related authorities continues to be strengthened to maintain economic stability, encourage domestic demand, and increase exports, tourism, and foreign capital inflows, including Foreign Direct Investment (PMA). (LM)