BI Open to Rate Hikes

Annisa ayu artanti    •    24 Agustus 2018 18:16 WIB
indonesian economy (en)
BI Open to Rate Hikes
Illustration (Photo:MI/Panca Syurkani)

Jakarta: Bank Indonesia (BI) deputy governor Dody Budi Waluyo said today the central bank is open to the possibility of hiking its 7 Days Reverse Repo Rate to deal with external pressures.

"We are still open to the possibility. We are closely monitoring external pressures," he said in Jakarta on Friday

Last week, BI decided to raise the 7 Days Reverse Repo Rate by 25 basis points to 5.50 percent. In addition, the central bank also increased the Deposit Facility (DF) and Lending Facility (LF) rates by 25 basis points to 4.75 percent and 6.25 percent respectively.

"The decision is consistent with ongoing efforts to maintain the attractiveness of the domestic financial markets and manage the current account deficit within an acceptable threshold," it said in a written statement on August 15.

BI is committed to strengthen coordination with the Government and other relevant authorities. It is also ready to maintain macroeconomic stability and external resilience against a backdrop of increasing global financial market uncertainty.