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BI Keeps Rate at 7.5 Percent

14 August 2014 18:44 WIB

Agus Martowardojo. TEMPO/Imam Sukamto

TEMPO.CO, Jakarta - The Bank Indonesia (BI) board of governors meeting have decided to keep the BI rate steady at 7.5 percentleaving the rate unchanged after 10 consecutive months.

BI is also leaving the rate for Lending Facilities and Deposit Facilities unbothered at 7.5 and 5.75 percent, respectively.

“The decision is in line with our efforts to contain the 2014 inflation rate at around 4.5 percent, give or take one percent. It is also consistent with our efforts to reduce this rate to four percent in 2015, give or take one percent, and to reduce our transactional deficit to achieve a healthier balance sheet,” BI Governor Agus Martowardojo told a press conference in Jakarta on Thursday.

According to BI, Indonesia’s transition into becoming a healthier economy is further helped by a stable and efficient macroeconomic policies.

“This is reflected by how the government is able to rein in on domestic demands and bring inflation under control, despite on-going transactional deficits sparked by a change in spending patterns throughout the second quarter of 2014,” said Agus.

Agus said BI was continuously working towards stronger monetary policy and better debt management policy, especially foreign debts in the corporate sector. Furthermore, BI will continue to work closely with the government to help control inflation rates and create a more sustainable economy.

Pewarta: Citro Atmoko Editor: Heppy Ratna




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