JAKARTA - Bank Indonesia's Board of Governors' Meeting on May 18-19, 2020 has 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 the lending facility rate at 5.25%.
According to BI Governor Perry Warjiyo, the decision is taken to maintain the stability of the rupiah exchange rate amid the uncertainty of the global financial markets due to the coronavirus (COVID-19) pandemic. However, he added that there is still room for a rate cut following the low inflation this year.
"Bank Indonesia also continues to strengthen the policy mix aimed at mitigating the risk of COVID-19 spread, maintaining financial market stability and the financial system, as well as synergisng with the government and relevant authorities in accelerating national economic recovery," Mr Warjiyo said in a video conference broadcast on BI's official YouTube channel, Tuesday (19/5).
The central bank, Mr Warjiyo added, will continue to pay close attention to the dynamics of the global economy and financial markets and the spread of the coronavirus and its impact on the Indonesian economy. In addition, BI will also remain in close coordination with the government and the Financial System Stability Committee (KSSK) to maintain macroeconomic stability and accelerate national economic recovery. (MS)