BI sets 7-day reserve repo rate at 5.25 percent

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Photo BI

JAKARTA (TheInsiderStories) – Bank Indonesia on Friday (Aug 19) decided to set BI 7-day Reserve Repo Rate (BI 7-day RR Rate) at 5.25 percent, with Deposit Facility (DF) rate at 4.50 percent and lending facility (LF) was cut by 100 basis points from 7 percent to 6 percent.

Starting today, Bank Indonesia uses the 7-day RR Rate as reference rate, replacing BI Rate, as a move to make the central bank’s monetary policy to be effectively transmitted into the financial industry.

BI will also guard interest rate corridor at a narrow range 75 bps above and below BI 7-Day RR Rate.

“The decision is in line with efforts to maintain stability of macro economy,  by keeping the domestic economic growth momentum amidst slowdown global economic growth,” BI said in a statement.

Bank Indonesia views that with the stability of macro economy, in particular inflation rate which is kept within targeted level, improved current account and relative stable exchange rate, there is room for easing monetary policy. (*)

 

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Source: The Insiderstories
BI sets 7-day reserve repo rate at 5.25 percent

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