REPUBLIKA.CO.ID, JAKARTA - Bank Indonesia has decided to maintain its key rate at 7.5 percent, which is relevant to the tight monetary policy to achieve inflation target ranges of 3.5-5.5 percent for 2014 and 3-5 percent for 2015.

"The meeting of Bank Indonesias board of governors has decided to maintain the BI rate at 7.5 percent, with lending facility and deposit facility rates remaining unchanged at 7.5 percent and 5.5 percent respectively," Bank Indonesia Governor Agus Martowardojo stated at a press conference on Thursday.

The decision to maintain the key rate for the third month in a row was also aimed at keeping the current account deficit at a healthier level, he explained. Martowardojo pointed out that Bank Indonesia will keep strengthening the mixture of monetary and macro-prudential policies, continuing market deepening efforts and enhancing coordination with the government in keeping the inflation rate and current account deficit in check.

"The meeting of the board of governors is of the view that the mixture of policies taken jointly by Bank Indonesia and the government has led to economic stability as expected. Through the cooperation, the inflation rate could be controlled and the current account deficit could be kept lower," he elaborated.

The move was also part of the efforts to control economic adjustments so that the current account deficit drops to a healthier level, he added. Martowardojo said that Bank Indonesia would keep monitoring global and domestic risks and would take anticipatory measures to ensure that macro-economic stability can be maintained.

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