JAKARTA - The Bank Indonesia Board of Governors (RDG) meeting on 21-22 July 2021 decided to maintain the BI 7-Day Reverse Repo Rate (BI7DRR) at 3.50%, the Deposit Facility interest rate at 2.75%, and the Lending Facility interest rate. by 4.25%.
"This decision is in line with the need to maintain exchange rate stability and the financial system due to uncertainty in global financial markets, amid low inflation forecasts and efforts to support economic growth from Covid-19," explained Bank Indonesia Governor Perry Warjiyo at a press conference today (22/7).
With Bank Indonesia's stabilization measures, the movement of the Rupiah exchange rate was relatively under control, amidst increasing uncertainty on global financial markets. The Rupiah exchange rate on July 21, 2021 weakened 0.29% point-to-point and 1.14% on average compared to the level at the end of June 2021.
The development of the Rupiah exchange rate was influenced by adjustments to capital outflows from developing countries driven by flight to quality behavior, amidst the adequate supply of domestic foreign currency.
Bank Indonesia continues to strengthen the Rupiah exchange rate stabilization policy in accordance with its fundamentals and the operation of market mechanisms, through the effectiveness of monetary operations and the availability of liquidity in the market. (LM)