JAKARTA (TheInsiderStories) - Indonesia Central Bank (BI) hold the 7-day Reverse Repo Rate at 4.75 percent, the Deposit Facility and Lending Facility rates at 4.00 percent and 5.50 percent respectively amid The Federal Reserves decided to raise the rate 0.25 percent in this month.
“The decision is consistent with Bank Indonesia’s efforts to maintain macroeconomic and financial system stability, while preserving domestic economic recovery momentum,” Tirta Segara, Executive Director of Communication BI said on Thursday.
The decision also congruent with the global economic improvements, stronger economic growth in Indonesia is expected, with maintained macroeconomic and financial system stability at home. Nevertheless, BI shall remain vigilant of global risks in the form of US policy direction and geopolitical risks in Europe, as well as domestic risks linked to the impact of administered prices on inflation.
To that end, BI will constantly seek to optimise its monetary, macroprudential and payment system policy mix in order to maintain macroeconomic and financial system stability. Furthermore, BI will also strengthen policy coordination with the government, focusing on controlling inflation within the target corridor as well as ongoing structural reforms to support sustainable economic expansion.