"With the assessment and projections of various global and domestic indicators, the Board of Governors' Meeting on April 18 and 19, 2022, decided to maintain the BI7DDR," BI Governor Perry Warjiyo stated during the announcement of the Monthly Board of Governors' Meeting Results for the April 2022 Quarterly Coverage, accessed here on Tuesday.
The deposit facility interest rate is also maintained at 2.75 percent and the lending facility interest rate is still at 4.25 percent.
Warjiyo deemed the decision necessary to maintain stability in the rupiah exchange rate and control inflation as well as the efforts to encourage economic growth in the midst of increasing external pressure.
The increase in global pressure was due to geopolitical tensions between Russia and Ukraine as well as the initiative of monetary policy normalization in developed countries, particularly the United States.
BI also continues to improve the policy mix strategy to maintain stability and support economic recovery through various measures, such as enhancing the rupiah exchange rate policy in line with market mechanisms and economic fundamentals.
The Central Bank will also apply accommodative macroprudential policies to encourage credit and banking financing to the business sector by maintaining the Countercyclical Capital Buffer (CCyB) ratio at zero percent and the Macroprudential Intermediation Ratio (RIM) in the range of 84 to 94 percent.
The Macroprudential Liquidity Buffer Ratio (PLM) also stayed at six percent, with repo flexibility at six percent, and the Sharia PLM ratio at 4.5 percent, with repo flexibility capped at 4.5 percent.
His administration will also follow the transparency of the basic lending rate policy by conducting a more thorough assessment on the development of banking operating income sources as well as ensuring the supply of money needs, money distribution, and cash services, as well as the preparation for BI-FAST during the 2022 Ramadan and Eid.
Another measure included the increase of limit on electronic money that could be stored, from Rp10 million to Rp20 million, as well as the limit on the value of monthly transactions, from Rp20 million per month to Rp40 million per month. It would take effect on July 1, 2022.
They would also improve international policies through collaborating with central banks and other allied countries' authorities, facilitating investment and trade promotion in priority sectors in collaboration with relevant stakeholders, and achieving the targets of six priority agendas in the G20 financial section with the Finance Ministry.
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Translator: Agatha O V, Mecca Yumna
Editor: Sri Haryati
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