Kunthi Fahmar Sandy
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.
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).
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.
