Indonesia’s central bank holds interest rate steady at 6 pct

JAKARTA, Nov. 20 (Xinhua) — The Board of Governors of Bank Indonesia on Wednesday decided to hold the benchmark interest rate steady at 6 percent, as well as the deposit and lending facility rates at 5.25 percent and 6.75 percent, respectively.
“This decision is consistent with the goal of managing inflation within the range of 1.5 to 3.5 percent in 2024 and 2025, while ensuring sustainable economic growth,” Bank Indonesia Governor Perry Warjiyo said at a press conference.
Bank Indonesia is also focusing on the stability of rupiah exchange rate, particularly given increasing geopolitical and global economic uncertainty, including political developments in the United States.
Monetary policy will continue to be altered in response to exchange currency movements, inflation expectations, and changes in global and domestic factors.
Meanwhile, macroprudential policies and the payment system are designed to boost economic growth while maintaining prudence, especially by promoting priority sectors and the green economy.
According to Bank Indonesia, economic growth in 2024 will be between 4.7 and 5.5 percent, and it will accelerate in 2025. ■