BI Holds Its Key Rate at 6%

   •    17 Januari 2019 16:30 WIB
macroeconomics (en)
BI Holds Its Key Rate at 6%
Illustration (Photo:MI/Susanto)

Jakarta: Bank Indonesia (BI) decided to hold the BI 7-Day Reverse Repo rate at 6.00 percent after a Board of Governors meeting on Thursday, January 17, 2019.

"While also maintaining the Deposit Facility (DF) and Lending Facility (LF) rates at 5.25% and 6.75% respectively," the central bank said in a press release received by Medcom.id. 

According to the written statement, the decision is consistent with ongoing efforts to reduce the current account deficit to a manageable threshold and maintain the attractiveness of domestic financial assets. 

Furthermore, BI continues monetary operations strategy to maintain adequate liquidity in the Rupiah money market and foreign exchange market in order to support monetary and financial system stability. 

Moving forward, BI will continue to optimise its policy mix and strengthen coordination with the Government and other relevant authorities in order to maintain economic stability and strengthen external sector resilience.

"Which entails controlling the current account deficit within the threshold of 2.5% of GDP in 2019," the central bank added.


(WAH)