XINHUA – Indonesia’s central bank on Wednesday decided to maintain the benchmark interest rate at 6.25 per cent, the deposit facility rate at 5.50 per cent and the lending facility rate at seven per cent.
“This decision aims to strengthen the stabilisation of the rupiah exchange rate and ensure that inflation remains controlled within the target range of 1.5 per cent to 3.5 per cent for 2024 and 2025,” Governor Perry Warjiyo told a press conference.
Perry said that the loose macroprudential policy will continue to be applied to encourage banking credit with prudence, while the payment system policy will focus on strengthening infrastructure and expanding digitalisation.
The bank is also enhancing its monetary operation strategy for stabilising the rupiah exchange rate through the optimisation of securities and foreign exchange market interventions.
Global financial market uncertainty is beginning to ease, despite a tendency for slowdown, which is encouraging foreign capital inflows and strengthening emerging market currencies, including Indonesia.
Indonesia’s economic growth for the second quarter of 2024 was recorded at 5.05 per cent annually, driven by household consumption, investment and increased exports.
