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BI keeps key rates unchanged, sees action in time deposits from DHE
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Finance Minister Sri Mulyani Indrawati (left), Coordinating Economic Minister Airlangga Hartarto (second left), Bank Indonesia Governor Perry Warjiyo (second right) and Financial Services Authority Chairman Mahendra Siregar pose on July 28, 2023, for a photo before the press in Jakarta. (The Jakarta Post/Deni Ghifari)
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t its latest monthly monetary meeting, which ended on Thursday, Bank Indonesia (BI) decided to keep its benchmark interest rate unchanged for the seventh consecutive month because of global uncertainties.
Briefing the press after the meeting, BI Governor Perry Warjiyo announced that the benchmark seven-day reverse repo rate is to be kept at its current level.
“The decision to maintain the BI 7-Day Repo Rate [BI7DDR] at 5.75 percent is consistent with the monetary policy to ensure that inflation falls into the target range,” said Perry.
The central bank’s consumer price index (CPI) target for this year is 3 plus/minus 1 percent. For 2024, it is set to 1.5 to 3.5 percent.
Statistics Indonesia (BPS) revealed earlier this month that annual growth of the CPI was 3.08 percent in July, down from 3.52 percent in June.
Following months of high price pressure, inflation in Indonesia has remained within the BI range since May, when the CPI grew at exactly 4 percent.
The latest economic growth figures have also been solid as the country beat expectations with second-quarter GDP growth of 5.17 percent, as revealed by BPS on August 7.
