Bank Indonesia keeps interest rate steady at 6%

The Bank Indonesia (BI) decided on Wednesday to maintain the BI-Rate at 6.00 per cent, the deposit facility interest rate at 5.25 per cent, and the lending facility interest rate at 6.75 per cent.

This decision aligns with the central bank’s monetary policy objectives of ensuring controlled inflation within the target range of 2.5±1 per cent in 2024 and 2025, and supporting sustainable economic growth.

In the short term, Bank Indonesia’s monetary policy focus is on maintaining the stability of the Rupiah exchange rate amidst increasing global financial market uncertainty, as per a statement from the central bank.

The central bank will continue to monitor the potential for lowering the policy interest rate while carefully considering the outlook for inflation, the Rupiah, and economic growth.

Attribution: Bank Indonesia’s report

Subediting: Y.Yasser