TEMPO.CO, Jakarta - The Bank Indonesia (BI) Board of Governors Meeting has resulted in a decision to cut the seven-day reverse repo rate by 25 basis points to 5 percent.
“The decision to cut the rate is in line with the stabilizing macro-economy,” Bank Indonesia governor Agus D.W. Martowardojo said during a press conference at the Bank Indonesia complex in Jakarta on Thursday, September 22, 2016.
In addition to slashing its benchmark rate, BI has lowered the deposit facility rate by 25 basis points to 4.25 percent.
“The lending facility rate is also lowered from 6 percent to 5.75 percent,” Agus added.
He revealed that the new policies will be in effect starting on Friday, September 23, 2016. Agus explained that the move was taken to support the government to boost the economic growth this year.
He added that the inflation rate remains under control at 4 percent plus-or-minus 1 percent.
“The inflation rate is low, and the exchange rate is stable,” Agus said.
GHOIDA RAHMAH