BI Maintains The Key Rate at 4.75%

Economic Research	18 November 2016
Indonesia
Economic Highlights
BI Maintains The Key Rate at 4.75% Bank Indonesia (BI) board of governors’ meeting maintained the BI 7-day Reverse Repo (RR) rate, the benchmark policy rate, at 4.75% on 17th November 2016. Similarly, deposit facility and lending rates were maintained at 4.00% and 5.50% respectively. BI believes that the move is prudent, in response to increasingly uncertain global financial markets in the wake of the US election result and against a stable domestic macroeconomic backdrop. This is reflected in low inflation and a narrower current account deficit. BI considers existing monetary and macroprudential policy easing adequate to preserve growth momentum. Furthermore, inflation in 2016 is expected to ease to near the floor of the target range of 3-5% in the 3.0-3.2% range. Economist:  Rizki Fajar| +6221 2970 7065