BI Maintained The Benchmark Rate at 6.75% and the BI 7-Day (Reverse) Repo Rate at 5.5%

Economic Research	22 April 2016
Indonesia
Economic Highlights
BI Maintained The Benchmark Rate at 6.75% and the BI 7-Day (Reverse) Repo Rate at 5.5% Bank Indonesia (BI) board of governors’ meeting decided to maintain the BI rate at 6.75% on 21st April 2016. Similarly, the lending and deposit facility rates were also maintained at 7.25% and 4.75% respectively. In addition, starting this month, BI also announce the BI-7 Day (Reverse) Repo rate, which was also maintained at 5.5%. This additional announcement is in line with BI’s plan to reformulate its policy rate, which will be effective on 19 August 2016. The decision is consistent with BI’s inflation target of 3-5% for this year, while preserving domestic economic growth momentum against a backdrop of sluggish global economic growth. Going forward, the BI said that it will strengthen its coordination with the government to control inflation, catalyse growth and accelerate structural reforms, thereby buoying economic growth while maintaining macroeconomic and financial system stability. The BI mentioned that in the short term, its focus will be on strengthening operational framework through a consistent term structure of monetary operations. Economist:  Rizki Fajar| +6221 29707065
To access our recent reports please click on the links below: 18 Apr: Exports Worsen But Imports Continue to Improve 01 Apr:  Annual Inflation Stabilises In March 01 Apr: A Continued Slowdown in Money Supply and Loan Growth 18 Mar: BI Cut The Benchmark Rate for the Third Time This Year By 25 bps To 6.75% 16 Mar: Exports & Imports Started to Recover, Trade Surplus Widened in February 02 Mar: Inflation Accelerated In February