Jakarta: The Bank Indonesia (BI) Board of Governors has agreed to lower the BI 7-day Reverse Repo Rate by 25 basis points (bps) to 4.5 percent.
In the meantime, Deposit Facility rates and Lending Facility (LF) rates were also lowered by 25 bps to 3.75 percent and 5.25 percent, respectively.
"Monetary policy remains accommodative and is consistent with controlled inflation in the target corridor, while serving as a pre-emptive measure to maintain domestic economic growth momentum," BI Governor Perry Warjiyo said here on Thursday, March 19, 2020.
In addition, the central bank has also decided to reinforce its policy mix towards mitigating the risk of covid-19 transmission, while maintaining money market and financial system stability and catalysing economic growth momentum through a number of policy measures.
"The authorities will continue to strengthen coordination by carefully monitoring the dynamics of covid-19 transmission and its impact on Indonesia over time, as well as the coordinated follow-up policies of the Government, Bank Indonesia and OJK required to maintain macroeconomic and financial system stability, while preserving economic growth momentum," he said.
As of Thursday, March 18, 2020, Covid-19 has spread to 159 countries, not only in Asia but also affecting Europe and the United States.
Recent developments have heightened economic uncertainty and severely eroded global financial market performance, while inducing currency pressures and capital flight to safe-haven assets.
Disruptions in the global supply chain have undermined the world economic growth outlook along with compressed global demand and retreating economic confidence.