21-6-2024 (JAKARTA) The Bank Indonesia (BI) Board of Governors convened on June 19-20 and decided to maintain the benchmark interest rate, or BI rate, at 6.25 percent. This move underscores the central bank’s commitment to a pro-stability monetary policy aimed at keeping inflation under control.
During a press briefing at the BI building on Thursday, June 20, BI Governor Perry Warjiyo announced that the deposit facility rate would remain at 5.5 percent, while the lending facility rate would stay at 7 percent. “This decision is consistent with the pro-stability monetary policy as a preemptive and forward-looking step to ensure that inflation remains under control,” Warjiyo stated.
By holding the policy rate steady, the central bank aims to maintain inflation within the targeted range for the current year and 2025. Additionally, loose macro-prudential policies will continue to be implemented to encourage bank financing for businesses and households, supporting economic growth.
The decision to maintain rates comes after BI raised its benchmark interest rate to 6.25 percent on April 24 in an effort to bolster the stability of the rupiah exchange rate against potential worsening global risks.
During the period from mid-May to mid-June, the rupiah experienced a 2.79 percent depreciation on a monthly basis, reaching its lowest level since April 2020. This decline was primarily attributed to the appreciation of the US dollar on global markets.
