BI Keeps 7-Day Reserve Repo Rate Unchanged At 4.75 Percent

Jakarta (Antara Bali) - Bank Indonesia (BI) decided on Thursday to keep its 7-day Reverse Repo Rate unchanged at 4.75 percent to maintain macroeconomic stability of the financial system.

At a meeting of its board of governors, the central bank also decided to keep the deposit facility rate at 4 percent and the lending facility rate at 5.5 percent. These will come into force on January 20, 2017.

"The decision is in line with Bank Indonesia's efforts to maintain macroeconomic stability and a stable economic system by optimizing domestic economic recovery amidst uncertainties about the global financial market," Executive Director of BI Communication Department, Tirta Segara, said.

After recording a relatively good performance throughout 2016, the Indonesian economy is expected to have good prospects and register high growth. At the same time, macroeconomic stability and the stability of the overall financial system can be maintained, he stressed.

Bank Indonesia will remain wary of several risks in 2017, including global risks that might emerge from the direction that the governments of the US and China  may take. Other factors such as global crude price hike and domestic risks related to the impact of administered price hike on the inflation rate will also have to be taken into account, he explained.

"For its part, Bank Indonesia will always optimize a mixture of monetary and macro-prudential policies and payment system to maintain macroeconomic stability and financial system by taking into account economic recovery efforts," he underlined.  (WDY)