Jakarta: The Board of Governors of Bank Indonesia (BI) agreed to lower the BI 7-day Reverse Repo Rate by 25 basis points (bps) to 5.00 percent.
In addtion, Deposit Facility (DF) rates and Lending Facility (LF) rates were lowered 25 bps to 4.25% and 5.75% respectively.
"The policy is consistent with controlled inflation and attractive returns on domestic financial investment assets, and as a pre-emptive measure to stimulate domestic economic growth momentum against a backdrop of global economic moderation," BI Governor Perry Warjiyo told a press conference here on Thursday, October 24, 2019.
"Furthermore, the policy is supported by a monetary operations strategy optimised to maintain adequate liquidity and facilitate the effective transmission of an accommodative policy mix," he added.
According to him, BI is maintaining an accommodative macroprudential policy stance in order to stimulate bank lending and expand economic financing.
Moreover, payment system policy and financial market deepening will also be strengthened to foster economic growth.
Going forward, the central bank will monitor domestic and global economic development in using its room to implement an accommodative policy mix in order to maintain controlled inflation and external stability as well as to support economic growth momentum.
In addition, It will continue to strengthen coordination with the Government and other relevant authorities in order to maintain economic stability and catalyse domestic demand, while boosting exports and tourism and attracting foreign capital flows, including Foreign Direct Investment (FDI).