RHB | Indonesia | BI Held The Benchmark Rate Unchanged At 7.5%

Economic Research
Indonesia
Economic Highlights
BI Held The Benchmark Rate Unchanged At 7.5% Bank Indonesia (BI) board of governors’ meeting decided to hold the BI rate unchanged at 7.5% on 15th October 2015. Similarly, the lending facility rate and the deposit facility rate also held unchanged at 8.0% and 5.5% respectively. The unchanged benchmark rate is considered consistent with the situations and conditions of the Indonesia economic prospects going forward. By maintaining the current monetary policy stance, inflation is projected to decline to the lower half of the 4% target corridor. The policy stance is also considered appropriate to reduce the current account deficit to a healthier level than previously thought, namely around 2% of GDP at year end. In 3Q15, the BI expects the economy to slightly outpace that posted in the previous quarter. Going forward, the BI will strengthen its monetary policy mix and coordinate with the central government in order to guard the macroeconomic stability. BI also welcomes the recent policy packages released by the Government aimed at catalyzing economic growth and to bolster domestic economic fundamentals. Economist:  Rizki Fajar| +6221 2970 7207
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