JAKARTA, Oct 16 — Indonesia's central bank has maintained the interest rate at six per cent after reducing it by 0.25 percentage points last month, said Governor of Bank Indonesia, Perry Warjiyo today, reported Xinhua.
At a two-day meeting from yesterday until today, the Board of Governors of Bank Indonesia also decided to keep the deposit rate unchanged at 5.25 per cent and the lending rate at 6.75 per cent.
"This decision is consistent with the monetary policy direction to ensure that inflation remains controlled within the target range of 1.5 per cent to 3.5 per cent for 2024 and 2025 while supporting sustainable economic growth," he said at a press conference.
The central bank is focusing on short-term monetary policy and strengthening the stability of the rupiah exchange rate amid geopolitical conflicts that could lead to uncertainty in global financial markets.
Perry noted that a loose macroprudential policy remains in place to encourage bank lending to priority industries for growth and job creation while adhering to prudential principles.
— Bernama
