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

Economic Research	20 May 2016
Indonesia
Economic Highlights
BI Held 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 19th May 2016. Similarly, the lending and deposit facility rates were also maintained at 7.25% and 4.75% respectively. In addition, BI announced that the BI-7 Day (Reverse) Repo rate, which will become the benchmark rate effective on 19 August 2016, would be maintained at 5.5%. The decision was expected given that inflation is moderating and is within BI’s inflation target of 3-5% for this year, while currency is still weak Meanwhile, the BI mentioned that the monetary transmissions through the interest rate is improving. Economist:  Rizki Fajar| +6221 29707065
To access our recent reports please click on the links below: 22 Apr: Higher Infrastructure Spending: Where Does The Money Come From? 22 Apr: BI Maintained The Benchmark Rate at 6.75% and the BI 7-Day (Reverse) Repo Rate at 5.5% 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