BI maintains rates at 4.50%
JAKARTA - Bank Indonesia's (BI) Board of Governors' Meeting on April 13-14, 2020 decided to maintain the benchmark interest rate (BI 7-Day Reverse Repo Rate) at 4.50%. In addition, BI also maintains the Deposit Facility rate at 3.75% and Lending Facility rate of 5.25%.
According to BI Governor Perry Warjiyo, the decision takes into account the need to maintain external stability amid high uncertainty due to the coronavirus (COVID-19) pandemic. Nevertheless, Mr Warjiyo stressed that BI still sees room for a rate cut with low inflation and the need to boost economic growth.
"The Bank Indonesia policy mix is part of policy synergies coordinated very closely with the government, the Financial System Stability Committee (KSSK), and related authorities to maintain macroeconomic and financial system stability and in efforts to recover the national economy from the impact of COVID-19," Mr Warjiyo said in a video conference broadcast on BI's official YouTube channel, Tuesday (14/4).
The central bank, continued Mr Warjiyo, will continue to pay close attention to the dynamics of the Indonesian economy and issue policies through close coordination with the government and KSSK to maintain macroeconomic stability, facilitate the financial system, and ensure national economic recovery. (MS)