The central bank decided to keep the benchmark interest rate unchanged at 7.5 percent, the deposit facility rate at 5.5 percent, and the lending facility rate at 8 percent.Jakarta (ANTARA News) - Bank Indonesia (BI) has indicated that it will continue to implement a tight monetary policy this year to maintain economic stability.
"The BI rate is an indicator of the central banks stance," Executive Director of the Communications Department of BI Tirta Segara said at a press conference here on Tuesday.
Judging by the current economic condition, the central bank deemed it necessary to ensure that the inflation rate would reach its target, the rupiahs exchange rate against the dollar would be stable, and the current account deficit could be maintained at 2.5 to 3 percent this year, he stated.
"According to our calculations, we need to keep the BI rate at its current level (of 7.5 percent). So we have maintained it," Segara pointed out, adding that the relatively high BI rate was one of the steps that was part of BIs policy.
He also affirmed that the central bank would continue to monitor the money market and would not hesitate to intervene when necessary.
"In addition, we also keep developing ways to deepen the financial market," Segara noted.
At the meeting of the board of governors of BI that just ended, the central bank decided to keep the benchmark interest rate unchanged at 7.5 percent, the deposit facility rate at 5.5 percent, and the lending facility rate at 8 percent.(*)
Editor: Heru Purwanto
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