BI Slash Indonesia's Benchmark Rate to 4.25%
KONTAN.CO.ID-JAKARTA. Bank Indonesia (BI) slashed BI 7-Day Reverse Repo Rate (BI7DRR) interest rate by 25 basis points (bps) to 4.25%.
This is the third time BI cut Indonesia’s benchmark rate for this year. In January, the BI rate or BI7DRR was 5%. In February 2020, BI reduced BI7DRR by 25 bps, and cut another 25 bps in March 2020.
The Board of Governors' Meeting (RDG) on 17-18 June 2020 also decided to reduce the deposit facility rate by 25 bps to 3.50%, and the lending facility rate by 25 bps to 5.00%
BI said, this decision was consistent with efforts to maintain economic stability and to prop economic recovery in the Covid-19 era.
BI also said, it revised the nation’s economic growth projection to 4.2%-4.6% this year, which would be the lowest level in the last 15 years.
