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Bank Indonesia holds rate in period of uncertainty
Bank Indonesia (BI) decided on Thursday to hold its seven day repo rate at 4.75 percent in anticipation of uncertain global conditions.
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Bank Indonesia (BI) spokesman Tirta Segara (left) and BI head of monetary policy Juda Agung (right) speak to journalists at a press conference at the BI office in Jakarta on Thursday.
(JP/Anton Hermansyah)
B
ank Indonesia (BI) decided on Thursday to hold its seven day repo rate at 4.75 percent in anticipation of uncertain global conditions.
The general air of uncertainty mainly comes from the US as an effect of newly elected President Donald Trump and plans from the US Federal Reserve to increase interest rates during 2017.
"We will keep an eye on the US and China as well as global oil prices," BI spokesman Tirta said at a press conference at the offices of BI on Friday.
(Read also: BI plays safe, expects to see lower bank lending rate)
The banking industry is stable with capital adequacy ratios of 22.8 percent and non performing loans still below 5 percent in November 2016, he added.
Credit grew 8.5 percent year-on-year in November 2016, lower than 9.5 percent year-on-year (yoy) in the same period of 2015.
Third party fund growth stood at 8.4 percent yoy, higher than the 7.7 percent yoy recorded in 2015. (bbn)
