JAKARTA - The Bank Indonesia (BI) Board of Governors’ Meeting on March 18-19, 2020 has decided to lower the BI 7-Day Reverse Repo Rate by 25 basis points (bps) to 4.5%.
The announcement was made by BI Governor Perry Warjiyo in a press conference broadcast on BI’s official YouTube channel on Thursday (19/3). In addition, the central bank has also decided to lower the deposit facility rate by 25 bps to 3.75% and the lending facility rate by 25 bps to 5.25%.
According to Mr Warjiyo, Indonesia’s monetary policy remains accommodative and consistent with the inflation forecast, which remains under control, as a pre-emptive measure to maintain the momentum of economic growth amid the coronavirus disease (Covid-19) outbreak.
“These various Bank Indonesia policy measures are taken in close coordination with the government and the Financial Services Authority (OJK) in mitigating the impact of Covid-19 so that macroeconomic and financial system stability can be maintained as well as the momentum of economic growth,” said Mr Warjiyo.
“We will continue to strengthen coordination by closely monitoring the dynamics of the spread of Covid-19 and its impact on Indonesia from time to time, as well as further policy coordination measures that need to be taken by the government, Bank Indonesia and OJK to maintain macroeconomic and financial system stability and the momentum of economic growth.” (MS)