JAKARTA, Oct 19 — Bank Indonesia (BI) has announced a 25 basis points increase in the benchmark interest rate to six per cent amid increasing global uncertainty, reported Xinhua.
The deposit facility interest rate was also raised to 5.25 per cent, while the lending facility remained at 6.75 per cent.
The decision was made after a two-day policy meeting of the bank’s board of governors yesterday and today.
“The increase is to strengthen the policy of stabilising the rupiah exchange rate from the impact of increasing global uncertainty,” BI Governor Perry Warjiyo said at a press conference.
He added it was also a preventive and forward-looking step to mitigate the impact of imported inflation.
— Bernama
