This is a follow-up measure to control inflation, stabilise the Indonesian currency, and bring the current account deficit to a sustainable level.Jakarta (ANTARA News) - Bank Indonesia raised its benchmark rate again on Thursday by 25 basis points to 7.25 percent, after raising it by 50 basis points on August 29.
The central bank`s board of governors also decided to increase the lending facility rate by 25 basis points to 7.25 percent and deposit facility rate by 25 basis points to 5.50 percent.
This is a follow-up measure to control inflation, stabilise the Indonesian currency, and bring the current account deficit to a sustainable level.
Efforts to stabilise the rupiah are in progress and supported in fundamental conditions to strengthen market operations and the foreign exchange market.
Bank Indonesia also continued strengthening its coordination efforts with the government and the Coordination Forum for Financial System Stability (FKSSK) to maintain the stability of macro-economic condition and national financial system to control inflation, stabilise the financial market, reduce the current account deficit, and maintain the soundness of the balance of payment.
Bank Indonesia believes these policies and other policies that had been implemented before will reduce the current account deficit and control inflation to achieve the target of 3.5-5.5 percent in 2014. (*)
Editor: Heru Purwanto
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