BI Raises Key Rate by 50 Bps to 5.25%

Eko Nordiansyah    •    29 Juni 2018 15:45 WIB
indonesian economy (en)
BI Raises Key Rate by 50 Bps to 5.25%
The central bank is confident that the policy measures will effectively strengthen economic stability, specifically the Rupiah exchange rate stability. (Photo:Medcom/Eko)

Jakarta: Bank Indonesia (BI) increased its 7-Day Reverse Repo Rate by 50 basis points to 5.25 percent after a Board of Governors meeting on Friday, June 29, 2018.

"while also raising the Deposit Facility (DF) and Lending Facility (LF) rates by 50 bps to 4.50% and 6.00% respectively," BI Governor Perry Warjiyo said.

The central bank earlier increased its reference rate by 25 basis points twice in May.

"The policy raise hike decision is Bank Indonesia’s pre-emptive, front-loading, and ahead of the curve move to maintain the domestic financial market’s competitiveness against several countries’ changing monetary policies as well as high global uncertainty," Perry added.

"The policy is still backed by dual intervention policy in the foreign exchange market and government securities (SBN) market as well as the monetary operations strategy to maintain adequate liquidity, particularly in the rupiah money market and interbank swap market," he stated.

The central bank is confident that the policy measures will effectively strengthen economic stability, specifically the Rupiah exchange rate stability. 

The central bank will also continue to monitor the domestic and global economic developments and outlook, to strenghten future policy mix responses.


(WAH)