BI maintains interest rate a 7.5%

Alertness, however, is still required in the future with regard to domestic as well as external risks ..."
Jakarta (ANTARA News) - Bank Indonesia (BI) has decided to maintain its reference rate at 7.5 percent, the ninth in a row since November 2013.

At a meeting of the board of governors here on Thursday, the Indonesian central bank had decided to maintain the Lending Facility and Deposit Facility interest rates at 7.5 percent and 5.75 percent, respectively.

"The policy is consistent with efforts to lead the rate of inflation toward the target set at 4.5 percent, give or take one percent, in 2014, and 4.0 percent, give or take one percent, for 2015, as well as to reduce the current account deficit to a healthier level," the executive director of the banks Communications Department, Tirta Segara, said.

He said BI viewed that macroeconomic stability has been maintained in the midst of economic structural adjustment process toward a more balanced economy.

"Alertness, however, is still required in the future with regard to domestic as well as external risks that could disrupt efforts of achieving the targets of inflation and current account transaction performance," he said.

In this connection, he said BI will continue to strengthen the combination of its monetary and macro-prudential policies as well as policies for strengthening the domestic economic structure and management of foreign debts, especially corporate debts.

He said BI will also increase coordination with the government to control inflation and current account deficit, so that the economic adjustment process could run well and the momentum of economic growth will be more sustainable.

(Reported by Citro Atmoko/Uu.H-YH/INE/KR-BSR/A014)

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