JAKARTA (TheInsiderStories) - Indonesia’s central bank, Bank Indonesia (BI), has decided to hold BI 7-Day Repo Rate at 4.75% with deposit facility rate at 4% and lending facility rate at 5.5%. The last interest changing was in October 2016.
“This decision is consistent with BI’s efforts in maintaining macroeconomic stability and financial system while continuing to push for the ongoing recovery process of the domestic economy,” said Head of Communication Department of BI, Tirta Segara on Thursday (Apr 20).
He said Bank Indonesia expects the global economy to improve which is supported by the recovery of US and EU economy as well as China economy. Although global crude oil prices remain high, BI expects global inflation to remain under control.
However, he added, the central bank sees risks coming from the global economy, especially from US Federal Reserve’s (Fed) plan to lower balance sheet and its impact on global financial markets.
“BI is also still looking at the continuation of the increasing of the Fed’s interest rate as well as geopolitics that occur in some areas,” he said.
BI also sees risk which is coming from the domestic economy, in particular the adjustment of administered prices and its impact on inflation in this year. Beside that, BI is also considering at the risks of the continuing consolidation of corporations and banks that have yet to optimally influence the national economy. (RF)
BI holds 7-Day Repo Rate at 4.75%
Photo by The Insider Stories