BI Raises Key Rate by 50 Bps to 4.75%

Jakarta: Bank Indonesia (BI) has again decided to increase the BI 7-Day Reverse Repo Rate (BI7DRR) by 50 bps to 4.75 percent.
 
"The Bank Indonesia Board of Governors (RDG) meeting on October 19-20, 2022 decided to increase the BI 7-Day Reverse Repo Rate by 50 bps to 4.75," said BI Governor Perry Warjiyo here on Thursday, October 20, 2022.
 
He also explained that the deposit facility interest rate also rose by 50 bps to four percent, while the lending facility rate rose by 50 bps to 5.5 percent.
 
According to him, the increase is a front loaded, pre-emptive, and forward looking measure to reduce inflation expectations which are currently too high and ensure that core inflation will return to the 3.0±1 percent target earlier in the first half od 2023.
 
In addition, the decision was made to stabilize the rupiah exchange rate to be in line with its fundamental value due to the strengthening of the US dollar and uncertainties in global financial markets.

last month, BI decided to raise the benchmark interest rate by 50 bps to 4.25 percent.
 
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