The BI Benchmark Interest Rate Has Decreased To 5.75 Percent

Gubernur Bank Indonesia, Perry Warjiyo (foto: dok)

The BI Benchmark Interest Rate Has Decreased To 5.75 Percent

Wednesday, 22 Jan 2025

In a recent meeting, the Board of Governors of Bank Indonesia (BI) decided to lower the BI 7-Day Repo Rate, commonly known as the BI Rate, by 25 basis points, bringing it down to 5.75 percent. Additionally, the interest rate for loan facilities was also reduced by 25 basis points to 6.5 percent. Similarly, the interest rate for deposit facilities decreased by 25 basis points, now standing at 5 percent. During a press conference in Jakarta on Wednesday, January 15, 2025, BI Governor Perry Warjiyo stated that this decision was made after a thorough assessment of both global and domestic economic conditions and projections.

The reduction in the BI Rate aligns with inflation predictions. Perry emphasized that this move corresponds with the expectation of low inflation for 2025 and 2026, estimated to be within the target range of 2.5 plus or minus 1 percent. He also highlighted the importance of maintaining the stability of the rupiah to control inflation and support economic growth. "Bank Indonesia will continue to steer its monetary policy to keep inflation within the target and ensure the rupiah's value aligns with fundamentals, while also considering opportunities to boost economic growth based on current global and national economic dynamics," Perry explained.

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