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Bank Indonesia holds key rate, pledges more support to help economic recovery
BI will also continue to implement its loose monetary policy.
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Bank Indonesia (BI) Governor Perry Warjiyo talks during a virtual press conference held after the central bank's two-day policy meeting on Jan. 21. (Courtesy of Bank Indonesia/-)
B
ank Indonesia (BI) decided on Thursday to keep its benchmark interest rate unchanged and pledged more support to revive an economy hit hard by the coronavirus pandemic.
The central bank maintained its seven-day reverse repo rate at 3.75 percent, its lowest level in history, and held the deposit facility rate and lending facility rate at 3 percent and 4.5 percent, respectively.
The benchmark rate will affect banks’ savings and loan interest rates as well as bond yields.
The decision is consistent with predictions of low inflation, well-maintained external stability and the need to support economic recovery, BI Governor Perry Warjiyo said.
Read also: BI vows to keep rate low in 2021 to support recovery
“Bank Indonesia will strengthen policy synergy with the government and other authorities to build optimism on the national economic recovery,” he told a virtual press briefing. “BI will continue to direct all policy instruments to support the recovery.”
The central bank will also continue to implement its loose monetary policy, he stressed.
