TEMPO.CO, Jakarta - The board of governor’s meeting of Bank Indonesia (BI) has decided to keep the 7-day repo rate unchanged at 4.75 percent and hold deposit facility rate at 4 percent and lending facility rate at 5.5 percent.
Bank Indonesia’s executive director for communication department Tirta Segara revealed that the decision is consistent with BI efforts to maintain macroeconomic and financial system stability amid global uncertainty. The central bank, however, will continue to have an eye on several short-term risks, both global and domestic.
Global risks include rising global inflation, US economic and trade policy direction and further effects of Fed fund rate (FFR) hike as well as geopolitical risks from Europe.
Meanwhile, domestic risks include the impacts of adjustments to administered prices to the inflation rate. “Therefore, Bank Indonesia constantly optimizes its monetary, macroprudential and payment system policy mix to preserve macroeconomic and the financial system stability,” he noted in governor’s meeting announcement on Thursday, March 16, 2017.
Moreover, the central bank will continue to strengthen coordination with the government and focused on keeping inflation rate within the expected target and accelerate structural reform programs to support a sustainable economy.
BISNIS.COM
