Bank Indonesia Maintains Reference Interest Rate at 3.5 Percent

By | Mei 24, 2022 – Bank Indonesia (BI) maintained the benchmark interest rate or BI 7 Days Reverse Repo Rate (BI7DRR) at the level of 3.5 percent at the Board of Governors’ Meeting (RDG) on 23-24 May 2022.

The central bank also maintains other interest rates, namely the deposit facility at the level of 2.75 percent and the lending facility interest rate at the level of 4.25 percent.

“This decision is in line with the need to control inflation and maintain the stability of the rupiah exchange rate as well as maintain economic growth,” said BI Governor Perry Warjiyo in the May 2022 RDG Results Announcement in Jakarta, Tuesday.

Furthermore, he assessed that economic growth needs to be encouraged in the midst of high external pressures related to geopolitical tensions between Russia and Ukraine, as well as the acceleration of normalization of monetary policy in various developed and developing countries.

In line with this, BI has taken steps to strengthen its policy mix, such as strengthening the rupiah exchange rate policy to maintain exchange rate stability in line with market mechanisms and economic fundamentals.

Then, accelerate the normalization of liquidity policy through a gradual increase in the rupiah statutory reserve requirement (GWM) and increase incentives for banks that extend credit or financing to priority sectors and MSMEs and/or meet the macroprudential inclusive financing ratio (RPIM) target, effective September 1 2022.

Editor : Mohamad Nur Asikin

Reporter : Antara

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