BI Maintains Key Rate at 5.75 Percent as Inflation under Control

Bank Indonesia (BI), through its Board of Governors (RDG) Meeting on 21-22 June 2023, decided to maintain the BI 7-Day Reverse Repo Rate (BI7DRR) at 5.75%.

IDXChannel - Bank Indonesia (BI), through its Board of Governors (RDG) Meeting on 21-22 June 2023, decided to maintain the BI 7-Day Reverse Repo Rate (BI7DRR) at 5.75%.

BI also maintaned the Deposit Facility interest rate at 5.00%, and the Lending Facility interest rate at 6.50%.

According to BI Governor Perry Warjiyo, the decision is consistent with the central bank's monetary policy to ensure a continued decline in future inflation expectations.

"BI believes core inflation is within the range of 3.0 ± 1% in the remainder of 2023 and Consumer Price Index (CPI) inflation can soon return within the target range of 3.0 ± 1% starting September 2023," he said in Jakarta on Thursday (22/6/2023).

BI focuses on strengthening the stabilization of the rupiah to control imported inflation and mitigating the impacts of global financial market uncertainties on the rupiah exchange rate.

Meanwhile, the acceleration of the payment system digitization continues to be encouraged to expand the digital economy and strengthen the stability of payment systems and services. 

The mix of BI's monetary, macroprudential and payment system policies is expected to be able to support the country's sustainable economic growth. (WHY)