JAKARTA (TheInsiderStories) - Bank Indonesia (BI) has decided to keep BI 7 Days Reserves Repo Rate at 4.75% unchanged, citing stable economic condition.
“Bank Indonesia board of governors meeting has decided to keep the BI 7 Days Reserve Repo Rate at 4.75%,” Bank Indonesia Governor Agus Martowardojo said Thursday.
At the same time, the central bank holds deposit facility at 4% and lending rate facility at 5.50%.
“The decision is consistent with BI’s drive to maintain macro economic stability and financial system by maintaining domestic economic recovery momentum,” he said.
He said the reason to maintain the rate is that the current liquidity in the banking system remains well-guarded. The central bank’s standpoint on monetary policy remains the same as in previous month. Nevertheless, the central bank is monitoring closely the trend of inflation rate, which could increase in the next few months, should the government raise the price of administered products.
BI said in line with global economic recovery, Indonesia’s economy is projected to improve, supported by stability of macro economic condition and financial system.
BI however sees there is still external risks that could disrupt the country’s economic growth, such as the US economic policies and geopolitical risks from Europe. “Therefore, Bank Indonesia will optimize monetary policy mixed, macroprudential and payment system in order to maintain economic and fianncial stability,” it said. (*)