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Jakarta Post

BI vows to keep rate low in 2021

  • Adrian Wail Akhlas

    Jakarta

Jakarta   /   Fri, December 4 2020   /  01:00 am
A screen grab shows Bank Indonesia (BI) Governor Perry Warjiyo as he delivers his remarks during the BI Annual Meeting held virtually on Dec. 3, 2020.(Courtesy of Bank Indonesia/-)

Bank Indonesia (BI) will maintain its loose monetary policy stance and keep its benchmark interest rate low in 2021 to support the economic recovery while pledging to strengthen and develop the country’s digital payment system. BI Governor Perry Warjiyo said the central bank would continue to use all its policy instruments to pursue economic recovery next year, projecting the economy to rebound by 4.8 percent to 5.8 percent of growth. “Monetary stimulus will continue in 2021 while the benchmark interest rate will remain low until inflation picks up,” he said during the BI annual meeting on Thursday. The rupiah slightly weakened by 0.11 percent on Thursday while the Jakarta Composite Index (JCI) gained 0.15 percent. The central bank has cut its benchmark interest rate five times this year to 3.75 percent, its lowest level in history, to support an economy ree...