REPUBLIKA.CO.ID, JAKARTA -- Bank Indonesia (BI) decided to maintain the central bank's interest rate (BI Rate) at the level of 7.5 percent in the meeting of Board of Governors of Bank Indonesia, Tuesday (17/11). The interest rate of deposit facility remained at the level of 5.50 percent and lending facility remained at 8.00 percent.
Interest rates have been maintained over nine months since lowered in February 2015 from the previous level of 7.75 percent.
Governor of Bank Indonesia, Agus Martowardo, said decision to hold BI Rate, was the decision to face development of world economy, global economic pressures, and possible risk of rising of US interest rates.
"Even there is impact of economic policies of countries around the world including the rise of US interest rate, we see Indonesia's economic fundamentals continued to show improvements," he explained, in a press conference at the headquarters of Bank Indonesia, in Jakarta, Tuesday (17/11 ).
The meeting also decided to lower primary minimum reserve requirement (GWM) from eight percent to 7.5 percent. The decision would take effect from 1st December 2015.
By lowering primary reserve requirement, BI targeted to increase capacity of bank financing to support economic activities that began to increase in the third quarter of 2015.
Ikuti Whatsapp Channel Republika