The policy is a response to the economic development in general in the past several days, BI Governor Agus Martowardojo said.Jakarta (ANTARA News) - Bank Indonesia has decided to raise the deposit facility interest rate from four percent to 4.25 percent to better guarantee monetary stability.
"In a meeting of the council of governors this year we agreed to raise the interest rate on deposit facility by 25 basis points," BI Governor Agus Martowardojo said here on Tuesday night.
The policy is a response to the economic development in general in the past several days, Agus said.
"This is part of our steps to prepare a monetary policy package to be discussed comprehensively by the council of governors in its monthly meeting," he said
Agus refused to say that the move is a signal from the central bank to raise its benchmark interest rate (BI rate) from the present level of 5.75 percent.
"I have never commented about it , but let us just see the real condition at present. We have to be prepared against high inflation rate," he said.
Asked about the rupiah fall, Agus said global condition caused the rupiah to lose more value against the dollar, but it is temporary.
He said Bank Indonesia is always ready to take step to maintain the stability of the country`s financial system including dollar and rupiah liquidity in the market.
"We wants to send signal to the market that BI will continue to prop up rupiah ," he said.
In addition, Bank Indonesia will strengthen coordination with the government, the Financial Service Authority (OJK) and the Deposit Insurance Corp.(*)
Editor: Heru Purwanto
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