BI Holds Interest Rate At 5.75 Percent In February 2025

Bank Indonesia (BI) has decided to keep the benchmark interest rate, known as the BI 7 Days Repo Rate, at 5.75 percent during the Board of Governors Meeting held on February 18-19, 2024. As a result of this decision, the deposit facility rate remains at 5 percent, while the lending facility rate stays at 6.5 percent. "The Board of Governors Meeting on February 18-19, 2024, has decided to maintain the BI Rate at 5.75 percent," stated Bank Indonesia Governor Perry Warjiyo during a press conference on January 17.

Perry explained that this decision to hold the interest rate at 5.75 percent aligns with efforts to keep inflation for 2025 and 2026 within the target range of 2.5 percent plus or minus 1 percent for 2024. Additionally, macroprudential policies and the payment system will continue to support sustainable economic growth. The macroprudential liquidity incentive policy (KLM) will be enhanced to encourage bank credit to priority sectors for growth and job creation. "The payment system policy will also be directed to support growth, particularly in trade and SMEs, by strengthening the reliability of infrastructure and the payment system structure," Perry concluded.

Tag: Bank Indonesia BI Perry Warjiyo