Bank Indonesia Sets Benchmark Interest Rate at 6 Pct.

Monday, 09 September 2024

Bank Indonesia Sets Benchmark Interest Rate at 6 Pct.

Author: Andree Nizar
November 25, 2023

Bank Indonesia. Photo : Homecare24

SEAToday.com, Jakarta - Bank Indonesia (BI) has set the benchmark interest rate or BI 7-Day Reverse Repo Rate (BI7DRR) at 6 percent, with the deposit facility rate at 5.25 percent and the lending facility rate at 6.75 percent in November 2023. The policy was announced by BI Governor Perry Warjiyo in a press conference on Thursday (11/23), following last month's 0.25 percent increase in the BI's benchmark interest rate.

Perry explained that the decision to maintain BI's policy rate was in line with efforts to mitigate the impact of global uncertainties that could affect the rupiah. This policy is seen as a pre-emptive and forward-looking move to mitigate the impact on imported inflation.

In addition, Perry acknowledged that he will continue to support sustainable economic growth by implementing Macroprudential Liquidity Incentive Policy (KLM) and reducing the Macroprudential Liquidity Buffer (PLM) to encourage further credit financing.