Indonesia's Central Bank Maintains Key Rate at 5.75%

Husen Miftahudin    •    23 Oktober 2018 17:08 WIB
indonesian economy (en)
Indonesia's Central Bank Maintains Key Rate at 5.75%
Illustration (Photo:MI/Susanto)

Jakarta: Bank Indonesia (BI) decided to maintain its 7-Day Reverse Repo Rate at 5.75 percent after a Board of Bovernors meeting on Tuesday.

"While also maintaining the Deposit Facility and Lending Facility rates at 5.00 percent and 6.50 percent respectively," BI senior deputy governor Mirza adityaswara said.

The decision is consistent with ongoing efforts to reduce the current account deficit within a manageable threshold, while maintaining the attractiveness of domestic financial markets, thereby bolstering external resilience in Indonesia against a backdrop of persistently high global uncertainty. 

BI will continue a monetary operations strategy oriented towards maintaining adequate liquidity in the Rupiah market and foreign exchange market, while also effectively commencing the Domestic Non-Deliverable Forwards (DNDF) next month.

The central bank is always strengthening policy coordination with the Government and other relevant authorities in order to maintain economic stability and reinforce external resilience, including stimulating exports and lowering imports, which will reduce the current account deficit to 2.5% of GDP projected in 2019. 

Moving forward, BI will monitor prevailing economic developments, such as the current account deficit, exchange rates, financial system stability and inflation, as follow-up measures to maintain macroeconomic and financial system stability.


(WAH)