The BI reference rate remains at 5.75%

Jakarta, CNN Indonesia – Bank of Indonesia (BI) this time maintain the level interest rate the benchmark (7-day reverse pension rate / 7DRRR) is 5.75% this month. Interest Rates deposit facility and interest rates loan facility each at 5.0% and 6.5%.

IB Deputy Governor Mirza Adityaswara said that this was done after reviewing global and national economic conditions at the October 22-23, 2018 Board of Governors meeting.

"BI DIG, October 22 and 23, 2018, decided to keep the BI 7DRRR at 5.75%," Mirza told BI Complex on Tuesday (10/23).

Mirza explained from a global perspective that the global economy should experience a slowdown, even as world crude oil prices continue to rise. However, the slowdown in commodity prices has started to be felt.

While the economy of the United States (United States) should remain strong. Indeed, household consumption supports the monetary policy of the US central bank, the Federal Reserve. While the Chinese economy is expected to collapse, it is likely to affect the global economy.

On the domestic front, Indonesia's economic growth is not expected to be as strong as expected due to a decline in net exports, although the levels of purchasing power and consumption should remain good, thanks to the implementation of general elections (Elections).

However, investment conditions continue to improve, while imports increase in line with the increase in domestic consumption.

"It is estimated that the national economy is at the bottom of the 5.0 to 5.4 percent growth range," he said.

Other supporters, especially because of the inflation-enhancing CPI, are still in the 3.5% target range set by the national central bank. at the end of this year.

In addition, the impact of global and national economic conditions has indeed put pressure on the rupee exchange rate. However, Mirza ensures that the depreciation of the rupee is still much lower than that of Indonesian peers.

"During the current year, the depreciation of the rupiah was 10.65% or less than that of Brazil, India, South Africa and Turkey", he explained.

Looking ahead, Mirza is ensuring that BI will continue to be present in the market to maintain the stability of the rupee exchange rate and the stability of economic growth and the financial system. (uli / lav)