Bank Indonesia Maintains Benchmark BI Rate at 6.25 percent
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22 May 2024 17:19 WIB
TEMPO.CO, Jakarta - Bank Indonesia (BI) maintains its benchmark interest rate (BI rate) at 6.25 percent. BI Governor Perry Warjiyo conveyed this in a press conference on the results of the BI Board of Governors Meeting held at his office on Wednesday, May 22, 2024.
"The BI Board of Governors Meeting on May 21-22, 2024 decided to maintain the BI rate at 6.25 percent, as well as the deposit facility rate at 5.5 percent and the lending facility rate at 7 percent," Perry said.
This decision, said Perry Warjiyo, is consistent with pro-stability monetary policy as a preemptive and forward-looking measure to ensure inflation remains under control within the target of 2.5 plus minus 1 percent in 2024 and 2024. This includes effectiveness in maintaining foreign capital flows and rupiah exchange rate stability.
Meanwhile, macroprudential and payment system policies remain pro-growth to support sustainable economic growth. Loose macroprudential policies continue to be pursued to encourage bank financing credit to businesses and households, as well as infrastructure and industrial structure of the payment system, and expand the acceleration of payment system digitization.
"To ensure stability and support sustainable economic growth amid high uncertainty in global financial markets, BI continues to strengthen the monetary, macroprudential and payment system policy mix," Perry Warjiyo said.
BI raised its benchmark interest rate to 6.25 percent on April 24, 2024. This hike, said Perry, was intended to strengthen the stability of the rupiah exchange rate from the possibility of worsening global risks.
In addition, raising the BI Rate is also a preemptive and forward-looking step. The goal is to ensure that inflation remains within the target of 2.5 plus minus 1 percent from 2024 to 2025.
ANNISA FEBIOLA
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