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Bank Indonesia Quantitative Easing Reaches Rp726tn in 2020

Translator

Ririe Ranggasari

Editor

Laila Afifa

January 22, 2021 | 10:26 am

TEMPO.CO, Jakarta - Bank Indonesia (BI) announced that it has executed Rp726.57 trillion worth of quantitative easing to banks throughout 2020. BI Governor Perry Warjiyo said that the quantitative easing policy will continue this year as well.

In an online press conference held after the central bank's board of governors' meeting yesterday, Jan. 21, Perry said that most of the quantitative easing came from the decrease in statutory reserves, which was around Rp155 trillion, and Rp555.77 trillion of monetary expansion.

As of January 19 this year, Perry said that BI has carried out a monetary expansion with a volume of Rp7.44 trillion.

He added that ample liquidity and the interest rate cut have contributed to lowering the interest rates of time deposits and working capital loans.

Perry predicted that low credit interest rates will remain a trend in 2021, supported by ample liquidity and low bank interest rates.

Read: Indonesia Central Bank to Maintain Low-Interest Policy in 2021

Muhammad Hendartyo

Bank Indonesiaquantitative easingBankInterest RatePerry Warjiyo

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