BANKING

BI Raises Key Rate by 25 Basis Points to 6 Percent

Kunthi Fahmar Sandy 19/10/2023 15:48 WIB

Bank Indonesia (BI) has decided to raise its key interest rate, BI 7-Day Reverse Repo Rate (BI7DRR), by 25 basis points (bps) to 6.00%.

BI Raises Key Rate by 25 Basis Points to 6 Percent. (Foto: MNC Media)

IDXChannel - Bank Indonesia (BI) has decided to raise its key interest rate, BI 7-Day Reverse Repo Rate (BI7DRR), by 25 basis points (bps) to 6.00%.

The decision was agreed by the BI Board of Governors Meeting held on 18-19 October.

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Moreover, the central bank also raised the Deposit Facility Rate and the Lending Facility Rate by 25 bps to 5.25% and 6.75%, respectively.

"This increase aims to strengthen the rupiah exchange rate stabilisation policy amid rising global uncertainty," BI Governor Perry Warjiyo said during a press conference in Jakarta on Thursday (19/10/2023).

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The decision is also expected to strengthen pre-emptive and forward looking measures to mitigate the impact of imported inflation, so that inflation remains under control within the target of 3.0±1% in 2023 and 2.5±1% in 2024.

"Loose macroprudential policy is strengthened by implementing the Macroprudential Liquidity Incentive Policy (KLM) effectively and lowering the Macroprudential Liquidity Buffer (PLM) ratio to encourage credit/financing," he stated. (WHY)

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