TEMPO.CO, Jakarta - Bank Indonesia (BI) Board of Governors Meeting resulted in a decision to maintain the nation's benchmark interest rate, the 7-day reverse repo rate, at 4.75 percent.
BI spokesperson Tirta Segara said that BI had also decided to hold the deposit facility rate steady at four percent and the lending facility interest rate at 5.5 percent.
"These are consistent with BI's efforts to maintain the macroeconomic and financial system stability amid global uncertainties. However, BI will continue to watch a number of short-term risks, both global and domestic, in the future," Tirta said at the BI Complex in Jakarta on Thursday, March 16, 2017.
Global risks, Tirta explained, include global inflation rate, US economic and trade policies, Fed Fund Rate hike, and Europe's geopolitics. Domestic risks, Tirta added, include adjustments of administered prices against inflation.
Tirta revealed that BI will continue to optimize monetary and prudential policies, as well as the payment system, in a bid to maintain the macroeconomic and financial system stability.
"BI will work closely with the government by focusing on inflation control," Tirta added.
Tirta predicted that the global economy will improve despite looming risks. The global economic recovery will be supported by economic improvement in the US and emerging countries, as well as increasing commodity prices.
ANGELINA ANJAR SAWITRI