Indonesia's central bank cuts benchmark interest rate to 3.75 percent

Indonesia's central bank cuts benchmark interest rate to 3.75 percent

A screenshot of BI Governor Perry Warjiyo while revealing the outcome of the meeting of BI's board of governors in August 2020 . (ANTARA/Dewa Wiguna)

The decision took into account the low inflation forecast and controllable external stability and serves as a further step to speed up national economic recovery.
Jakarta (ANTARA) - Bank Indonesia (BI) decided to slash its benchmark interest rate, or BI seven-day reverse repo rate, by 25 basis points to 3.75 percent following the central bank's board of governors’ two-day meeting, ending Nov 19.

"The decision took into account the low inflation forecast and controllable external stability and serves as a further step to speed up national economic recovery," BI Governor Perry Warjiyo remarked during a virtual press conference following the meeting on Thursday.

During the meeting, BI also lowered the deposit facility rate by 25 basis points to three percent and lending facility rate by 25 basis points to 4.5 percent.

Warjiyo highlighted BI’s unwavering commitment to providing liquidity, including support for the government to expedite realization of the 2020 state budget.

BI lowered the benchmark rate after keeping it unchanged at four percent for the fourth consecutive month until October 2020.

Since November 21 last year, BI has lowered the benchmark rate by 125 basis points.
Related news: BI leaves key rate unchanged again amid low inflation outlook

Related news: BI 7-Day Reverse Repo Rate held at four percent


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