Right now, we certainly will be careful in maintaining the BI rate ..."Jakarta (ANTARA News) - Bank Indonesia (BI) decided to maintain its reference rate at 7.5 percent on Thursday for the fourth consecutive occasion after it reduced the rate by 25 basis points in February.
The Indonesia central banks board of directors also decided to maintain the deposit facility rate at 5.5 percent and lending facility rate at 8.0 percent.
"The decision was in line with the efforts to maintain inflation at a targeted rate of 4 plus/minus one percent in 2015 and 2016 and to direct the current account deficit to a healthier level at between 2.5 and 3.0 percent of the gross domestic product in the medium term," BIs Executive Director of the Communication Department Tirta Segara stated.
He remarked that BIs combined policies will focus on the efforts to maintain macroeconomic stability in the midst of the ongoing global uncertainty.
He said the central bank also aims to maintain the momentum of economic growth by issuing provisions linked to the relaxation of macroprudential policies.
"Right now, we certainly will be careful in maintaining the BI rate, as the declining economic growth will continue to be the focus of our attention," he affirmed.
He stated that BI will strengthen coordination with the government in controlling inflation and the current account deficit and in accelerating the fiscal stimulus to boost economic growth.
"In view of this, BI supports the central and regional governments efforts to expedite the realization of budget spending including for infrastructure projects and to continue implementing various structural policies to improve Indonesias future economic prospects," he noted.
(Reporting by Citro Atmoko/Uu.H-YH/INE/KR-BSR/B003)
Editor: Priyambodo RH
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