Jakarta, CNBC Indonesia – Bank Indonesia announced the results of the November 2021 edition of the Board of Governors Meeting. As market expectations, Governor Perry Warjiyo and colleagues did not change the benchmark interest rate.
“The meeting of the Board of Governors (RDG) of Bank Indonesia on 17-18 November 2021 decided to keep BI 7 Day Reverse Repo Rate at 3.5%, interest rate Deposit Facility of 2.75%, and the interest rate Lending Facility by 4.25%,” Perry said in a press conference after the RDG, Thursday (11/18/2021).
The BI 7 Day Reverse Repo Rate has not changed since March 2021. This means that the benchmark interest rate has been on hold for nine consecutive months. The benchmark interest rate at 3.5% is the lowest in the history of independent Indonesia.
“With the risk of a third wave of coronavirus attacks hitting the economy, the central bank will certainly be wary. A fragile economy needs as much support as possible,” said Kunal Kundu, economist at Societe Generale, in his research.
“Accommodative fiscal and monetary policies are likely to continue to support the momentum of economic growth until the end of this year. However, if the US central bank (The Federal Reserve / The Fed) accelerates the increase in its benchmark interest rate, BI may review the direction of its monetary policy. Especially if next year inflationary pressures will begin to be felt,” added Radhika Rao, DBS Economist, in his research.
(aji / aji)
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