medcom.id, Jakarta: Bank Indonesia introduced reverse repurchase agreement rate or reverse repo rate as its new benchmark rate. BI stated the policy could strengthen monetary transmission.
"BI decided 7 day reverse repo rate as benchmark rate. The new policy would strengthen monetary transmission," said BI Governor Agus Martowardojo, Jakarta, Friday (4/15/2016).
Agus added the new policy will be effective on August 19, 2016. "During transition period, BI will announce BI Rate and BI 7 day reverse repo rate simultaneously until August 19, 2016," Agus explained.
Reverse repo is the selling of government debt securities (Surat Utang Negara/SUN) by Bank Indonesia to banks with an agreement to buy them back within a certain period.
The new policy would give positive impact in effort to decrease lending rates and deposit rates in banking industry.
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