IDXChannel - The Bank Indonesia Board of Governors' Meeting (RDG BI) decided to raise the benchmark interest rate (7 Days Reverse Repo Rate / BI 7DRR) by 25 bps to 5.75 percent.
Meanwhile, the deposit facility and lending facility interest rates are 5 percent and 6.5 percent, respectively.
"The decision to raise the benchmark interest rate with a more measured basis is a further step in front loaded, preemptive, forward looking, in ensuring the continued decline in inflation and inflation expectations in the future," said Bank Indonesia Governor Perry Warjiyo in the RDG Press Conference, Thursday (19/1/2023).
Perry ensured that the BI 7DRR increase of 225 bps accumulatively since the beginning of the increase starting in August 2022 to 5.75 percent remains adequate to ensure inflation remains in the range of 3 plus minus 1 percent in the first half of 2023 and consumer price index (CPI) inflation to return to the target of 3 plus minus 1 percent in the second half of 2023.
Hasil RDG Bank Indonesia (BI) Januari 2023
Meanwhile, Perry projects global economic growth this year to be 2.3 percent (yoy). This projection was recorded to decrease by 0.3 points compared to the previous projection of 2.6 percent (yoy). The decline in this projection is due to the global turmoil that is still occurring this year and the potential for recession in a number of developed countries.
"Overall, BI has lowered its global economic projection for 2023 to 2.3 percent (yoy) from the previous forecast of 2.6 percent (yoy). Global inflationary pressures are indicated to be easing in line with slowing global economic growth although it remains at a high level in line with rising global energy and food prices," he said.
"Watch our show IDX Channel Official Youtube on the Market Headlines Program, Friday (20/1/2023) with the theme BI Indicates That it Will No Longer Raise Interest Rate.