Bank Indonesia Leaves Rate Unchanged For Second Time

(RTTNews) - Indonesia's central bank held its key interest rate steady for a second policy session in a row on Thursday, as expected.

The Bank Indonesia Board of Directors, led by Governor Perry Warjiyo, left the BI rate unchanged at 6.00 percent. The bank said it has renamed the policy rate as BI-Rate, replacing the BI 7-Day Reverse Repo Rate to strengthen policy communication.

The previous move in the rate was a 25 basis point hike in October.

The deposit facility interest rate was kept at 5.25 percent, and the lending facility interest rate at 6.75 percent.

The decision to maintain the BI-Rate at 6.00 percent remains consistent with the focus of assuring stability of monetary policy, namely to strengthen the stabilization of the rupiah exchange rate as well as pre-emptive and forward looking steps to ensure inflation remains under control within the target of 2.5 ± 1 percent in 2024, the bank said.