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Bank Indonesia maintains reference rate at 4.75 percent
Bank Indonesia (BI) has decided to maintain its "Seven-Day Reverse Repo Rate" at 4.75 percent for the eighth time in a row to preserve macro-economic stability following the United States Federal Reserves’ interest rate increase
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The Bank Indonesia (BI) headquarters in Jakarta. (Antara/File)
B
ank Indonesia (BI) has decided to maintain its "Seven-Day Reverse Repo Rate" at 4.75 percent for the eighth time in a row to preserve macro-economic stability following the United States Federal Reserves’ interest rate increase.
"It is to support the recovery of our domestic economy," BI spokesman Tirta Segara said after the BI board of governors meeting on Thursday as reported by Antara.
BI’s deposit facility interest rate was also maintained at 4 percent, while lending facility interest stayed at 5.5 percent.
The last change in BI’s Seven-Day Reverse Repo Rate, from 5 percent to 5.75 percent, was made on Oct. 20, 2016.
The central bank will maintain its monetary policy and will make adjustments only if inflation rises above its target of 3 to 5 percent.
External pressures are still looming, but the Fed’s decision to increase its reference rate to 1 to 1.25 percent was anticipated, allowing Indonesia’s financial market to remain positive, Tirta said.
On the other hand, the global economy is predicted to improve, boosted by improvements in the US economy, which was driven by increasing consumption and investment, and better employment, he noted. (bbn)
