BI Again Maintains Key Rate at 5.75 Percent

Bank Indonesia (BI), through its Board of Governors' Meeting on 24-25 May decided to maintain the BI 7-Day Reverse Repo Rate (BI7DRR) at 5.75%.

IDXChannel - Bank Indonesia (BI), through its Board of Governors' Meeting on 24-25 May decided to maintain the BI 7-Day Reverse Repo Rate (BI7DRR) at 5.75%.

BI also kept the Deposit Facility rate at 5% and the Lending Facility rate at 6.5%.

BI Governor Perry Warjiyo said the decision to maintain its key rate at 5.75% was consistent with the central bank's preemptive and forward looking monetary policy.

This decision was taken in order to ensure the continued decline in inflation expectations.

"The 5.75% interest rate is to ensure that core inflation remains under control within the range of 3 ± 1% for the remainder of 2023 and that Consumer Price Index (CPI) inflation can soon return to the target range of 3 ± 1% in the third quarter of 2023," said Perry in a virtual press conference in Jakarta on Thursday (25/5/2023).

BI will also focus on strengthening Rupiah exchange rate in order to control imported inflation and mitigate the impacts of global financial market uncertainties.

"Macroprudential policies and loose liquidity will continue to encourage lending and financing, as well as maintain the country's financial system stability," said Perry. (WHY)