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Bank Indonesia maintains rate at 7.5%
Bank Indonesia announced on Tuesday that it had decided to maintain its benchmark interest rate at 7
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B
ank Indonesia announced on Tuesday that it had decided to maintain its benchmark interest rate at 7.5 percent to help support the country's economy.
The central bank also decided to maintain both the deposit facility rate and lending facility rate at 5.5 percent and 8 percent, respectively.
The bank's communications department executive director, Tirta Segara, said that those figures would be able to help stabilize the country's inflation rate below 4 percent, plus or minus one percentage point, in 2015 and 2016.
'We have to maintain this condition,' Tirta said on Tuesday after the bank's gubernatorial meeting (RDG) as quoted by kontan.co.id, adding that the policy would help manage the current account deficit.
During its RDG in the previous month, the central bank decided to lower its benchmark interest rate by 0.25 percentage points to 7.5 percent from 7.75 percent.
The move was made in order to help salvage the domestic currency, which has slowed down by 5.75 percent since January 2015.
The rupiah breached the level of Rp 13,000 per US dollar in early March. (nfo)(++++)
