BI slashes rates to 4.25% to drive economic recovery
JAKARTA - The Bank Indonesia (BI) Board of Governors' Meeting on Thursday (18/6) decided to lower the benchmark interest rate (BI 7-Day Reverse Repo Rate) by 25 basis points (bps) to 4.25%.
In addition, BI has also lowered the Deposit Facility and Lending Facility rates by 25% each to 3.50% and 5% respectively.
"This decision is consistent with efforts to maintain economic stability and encourage economic recovery in the COVID-19 era," BI Governor Perry Warjiyo said in a video conference broadcast on BI's official YouTube channel on Thursday.
In the future, said Mr Warjiyo, BI still sees that there is still enough room to reduce rates in line with low inflation, maintained external stability, and the need to encourage economic growth. In addition, the central bank will also strengthen the policy mix and coordination with the government and the Financial System Stability Committee (KSSK) to maintain economic and financial system stability.
"Bank Indonesia is committed to funding the State Budget through the purchase of Government Securities from the primary market and the provision of liquidity funds for banks to smooth the credit restructuring programme in support of the National Economic Recovery programme," Mr Warjiyo concluded. (MS)