BI 7 Day Reverse Repo Rate Slashed to 4.5%

Eko Nordiansyah    •    23 Agustus 2017 13:07 WIB
finance and money
BI 7 Day Reverse Repo Rate Slashed to 4.5%
Illustration (Photo: MI/Panca Syurkani)

Metrotvnews.com, Jakarta: Bank Indonesia slashed the 7 Day Reverse Repo Rate by 25 basis points to 4.5 percent on Tuesday, August 22, 2017.

The deposit facility rate was decreased by 25 basis points to 3.75 percent. Meanwhile, the lending facility rate was decreased by 25 basis points to 5.25 percent.

The decision was mainly influenced by low inflation. Moreover, the change was also influenced by stable current account deficit.

"This will be followed by a decrease in interest rates on other monetary instruments," Bank Indonesia Governor Agus Martowadojo said.

"The policy rate easing is expected to reinforce intermediation in the banking sector, to strengthen financial system stability as well as support higher economic growth," he said.

Inflation was recorded at 2.60 percent year-to-dat (ytd) or 3.88 percent year-on-year (YoY) in July 2017. Current account deficit is expected to remain at 1.5-2 percent of gross domestic product (GDP) in 2017.
 


(WAH)