BI holds benchmark rates at 3.5% to maintain stability

BI holds benchmark rates at 3.5% to maintain stability

Bank Indonesia (BI) Governor Perry Warjiyo holding an online press conference after the board of governors meeting in Jakarta on Tuesday (September 21, 2021). (ANTARA/Agatha Olivia/KT).

The decision is to continue the rupiah exchange rate policy so as to maintain exchange rate stability.
Jakarta (ANTARA) - Bank Indonesia (BI) has decided to hold the benchmark rate, or the BI 7-Day Reverse Repo Rate (BI7DRR), at 3.5 percent following a meeting of its board of governors.

The central bank has also decided to maintain the deposit facility rates at 2.75 percent and the lending facility rates at 4.25 percent.

"This decision is in line with the need to maintain exchange rate and financial system stability, amid low inflation predictions and efforts to support economic growth," BI Governor Perry Warjiyo said at a press conference after the meeting here on Tuesday.

BI has also continued to optimize the entire policy mix to maintain the macroeconomic and financial system stability and support economic improvement through various measures, Warjiyo informed.

"The decision is to continue the rupiah exchange rate policy so as to maintain exchange rate stability," he said.

This is in line with market fundamentals and mechanisms, he added. Another purpose for the decision is to strengthen monetary operation strategies to enhance the accommodative monetary policy stance, the Governor said.

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"We will reinforce the transparency policy of the Prime Lending Rate (SBDK) by deepening the assessment of SBDK transmission and new credit rates based on the bank types," he disclosed.

Furthermore, the central bank will accelerate the expansion of the Indonesian Standard Quick Response Code (QRIS) for merchants, especially in markets, shopping centers, and places of worship, he informed.

This is meant to enhance the integration between the digital economy and the financial ecosystem while supporting the health protocols, he remarked.

BI will take another step to strengthen policy coordination with the government related to the trial of social aid digitization and the electronification of government transactions to push up the realization of government spending, Warjiyo explained.

Furthermore, BI will facilitate trade and investment promotion and raise awareness on using the local currency settlement (LCS), in collaboration with relevant agencies, he said.

"In September and October 2021, there will be investment and trade promotions in Japan, China, and the United Kingdom," he added.

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