BI Again Maintains Key Rate at 5.75 Percent

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%.

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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.

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"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).