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| BI Cut The Benchmark Rate 25 bps to 7.25% |
Bank Indonesia (BI) board of governors’ meeting decided to cut the BI rate 25 bps to 7.25% on 14thJanuary 2016. Similarly, the lending and deposit facility rates were also cut to 7.75% and 5.25% respectively. This was on the back of macroeconomic stability after taking into consideration the reduced global uncertainty post US interest rate hike, easing inflation, and current account deficit is projected to improve in 2016.
Going forward, the BI said that it will strengthen its coordination with the government to control inflation, stimulate growth and accelerate structural reforms, thereby buoying economic growth while maintaining macroeconomic and financial system stability. Further easing will take place after rigorous assessments of the domestic and global economy.
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