The decision was made by taking into account the need to keep the stability of the rupiah's exchange rate amidst the expected low inflationJakarta (ANTARA) - Bank Indonesia has left its Seven-Day Reverse Repo Rate (BI7DRRR) unchanged at 4 percent for the third consecutive month in view of improvements in the global and domestic economy, including expectations of low inflation.
“The decision was made by taking into account the need to keep the stability of the rupiah's exchange rate amidst the expected low inflation,” BI Governor Perry Warjiyo said at an online press statement here on Tuesday.
The central bank has also decided to maintain the deposit facility rate at 3.25 percent and lending facility rate at 4.75 percent, following a meeting of its board of governors, held on October 12-13, 2020.
Warjiyo said BI will put emphasis on quantity by infusing liquidity into the banking industry. As of October 9, 2020, BI has injected additional liquidity of Rp667.6 trillion into the banking system.
He said BI supports the government’s efforts to expedite the realization of the 2020 state budget to boost national economic recovery amid the COVID-19 pandemic by buying sovereign debt papers (SBN).
BI had last lowered its benchmark interest rate by 25 basis points to 4 percent during a meeting of its board of governors in July, 2020.
Since July, 2019, BI has slashed the benchmark rate by 175 basis points.
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Translator: Dewa Ketut SW/Suharto
Editor: Rahmad Nasution
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