Jakarta (ANTARA News) - Bank Indonesias (BI) board of governors decided to keep its reference rate at 7.75 percent, while the Lending Facility and Deposit Facility rates were maintained at 8.0 percent and 5.75 percent, respectively, here on Thursday.

"The rates will still ensure that the short-term inflationary pressures caused by the governments recent decision to raise the price of subsidized oils remain under control and temporary to keep inflation rate between 3 and 5 percent in 2015," Director of the Communications Department of BI, Peter Jacobs, said.

He added that the policy was also in line with the banks stabilization measures to control the current account deficit and bring it to a healthier level.

"Bank Indonesia continues to strengthen the combination of its policies to ensure a stable macro economy and financial system," Jacobs explained.

The communications director of the central bank further noted that a tight monetary policy is still being continued to control inflation and current account deficit, while its accommodative macro-prudential policy being is maintained to ensure that the monetary tightening measures do not pose risks to the stability of the financial system.

Jacobs also pointed out that the current payment system policy is aimed at supporting the distribution of the governments social program and extending the non-cash national campaign.

Moreover, policy coordination between BI and the government will continue to be intensified to maintain macro-economic stability.

"Coordination is being done especially to control the inflationary pressures of the recent reallocation of fuel subsidy and current account deficit and to accelerate the implementation of the structural reform policy to boost sustainable economic growth," he stated.(*)

Editor: Heru Purwanto
Copyright © ANTARA 2014