BI Maintains Interest Rate at 7.5 Percent
14 April 2015 22:18 WIB
TEMPO.CO, Jakarta - Bank Indonesia (BI) Board of Governor's meeting on Tuesday, APril 14, 2015, has concluded that the Central Bank will keep the interest rate at its' current level of 7.5 percent, while Deposit Facility rate will be set at 5.5 percent, and Lending Facility rate is set at eight percent.
"The decision is a part of the institution's effort to achieve its' inflation target, which is currently set at four percent - give or take one percent - while decreasing the ongoing transactional deficit to around 2,5-3 percent of Indonesia's Gross Domestic Product (GDP) in next couple of months" said the executive director of BI's Department of Communications, Tirta Segara at a press briefing in Jakarta.
It is known that BI had previously decided to maintain its' BI rate at 7.5 percent in March 2015.
Tirta explained that BI will continue to analyse external risks as well as domestic risks to consistently harmonise its' monetary and macroprudential policies, which will consequently help the Rupiah defend its' value and keep the economic stability in check.
In addition, BI aims to intensify its' cooperation with the government to increase the effectiveness of its' inflation control measures, by assisting the government in accelerating its' structural reforms, said Tirta, who finished by stressing the importance of improving Indonesia's ongoing transactional balance, as well as the acceleration of its' infrastructure development programs, as it will help ensure the continuity of Indonesia's economic growth.
ANTARANEWS