Benchmark Interest Rate and Economic Stability

KOMPAS/TOTOK WIJAYANTO

Governor of Bank Indonesia (BI) Perry Warjiyo (second from right) accompanied by Deputy Governor of BI (from left) Rosmaya Hadi, Destri Damayanti, and Erwin Rijanto, prepare to inform journalists about the results of the BI Board of Governors Meeting in February in Jakarta, on Thursday (20/2/2020).

Bank Indonesia (BI) decided to keep its policy interest rate unchanged at 4 percent during its board of governors meeting in Jakarta on Wednesday.

The central bank kept the 7-day repurchase rate unchanged as part of its policy to maintain economic stability and to spur economic recovery in the midst of the Covid-19 pandemic, after cutting the benchmark rate by 25 basis points, respectively, during the last two consecutive months (Kompas, 21/8/2020). BI also maintained the deposit facility rate at 3.25 percent and lending facility rate at 4.75 percent.