Equityworld Futures – Bank Indonesia kept interest rates unchanged considering the economic conditions of Indonesia regards the stable state even in the face of global economic uncertainty.
Bank Indonesia through the Board of Governors (RDG) from 18-19 January 2017 decided to keep the BI 7-day Reverse Repo Rate (BI 7-day RR Rate) remained at 4.75%, with a fixed interest rate of 4.00 Deposit Facility Lending Facility% and fixed at 5.50%, effective from January 20, 2017.
As released on the website of Bank Indonesia, the decision did not change interest rates in line with Bank Indonesia’s efforts to maintain macroeconomic stability and financial system while optimizing the recovery of the domestic economy amid global financial market uncertainty.
Bank Indonesia predicts future prospects of the national economy is expected to continue to improve after noting a relatively good performance during 2016. Bank Indonesia said higher economic growth and macroeconomic stability and financial system is maintained.
However, Bank Indonesia also remained wary of a number of risks in 2017, both from the global, particularly related to the direction of US policy and China as well as the rise in world oil prices, and domestic adjustments primarily related to the impact of administered prices on inflation.
To that end, Bank Indonesia will continue to optimize the policy mix of monetary, macroprudential, and payment systems to maintain macroeconomic stability and financial system while considering support for the optimization of the economic recovery. Furthermore, Bank Indonesia will continue to strengthen coordination with the Government with a focus on controlling inflation to remain in the range of targets and structural reforms to support sustainable economic growth.
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