Indonesia's central bank (Bank Indonesia) concluded its Board of Governors Meeting later than usual on Thursday evening (20/07). However, there were no surprises. At the July policy meeting Bank Indonesia decided to keep its benchmark interest rate - the 7-day reverse repurchase rate - at 4.75 percent, in line with analyst estimates. Meanwhile, the deposit facility and lending facility were kept at 4.00 percent and 5.50 percent, respectively, effective per 21 Juli 2017.
Since October 2016 Bank Indonesia has not altered its benchmark interest rate, whereas earlier in 2016 it trimmed the rate on several occasions in an effort to boost lending and economic growth.
Director of Bank Indonesia's Communication Department Arbonas Hutabarat said the rate decision is consistent with the institutions efforts to maintain national economic stability as well as financial system stability while still encouraging the domestic economic recovery process.