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Jakarta Post

BI holds benchmark rate, urges banks to lower lending rate

  • Riska Rahman

    The Jakarta Post

Jakarta   /   Fri, December 18, 2020   /  09:18 am
The Jakarta Post Image
Bank Indonesia (BI) Governor Perry Warjiyo at the bank’s office building in Jakarta.(Courtesy of Bank Indonesia/-)

Bank Indonesia (BI) announced on Thursday that it would maintain its benchmark interest rate, the lowest in its history, and urged banks to lower their interest rates to boost the economy. BI Governor Perry Warjiyo said the central bank was keeping the seven-day reverse repo rate at 3.75 percent, the lowest since the rate was introduced in 2016. The central bank also maintained the deposit facility and lending facility rates at 3 and 4.5 percent respectively, following a two-day policy meeting. “This decision is consistent with our expectation of a low inflation rate, as well as external stability and a stable exchange rate,” he said during a virtual press briefing, adding that the move also aimed to support the national economic recovery program. Indonesia’s inflation rate picked up in November to 1.59 percent year-on-year (yoy), the highest level since June a...