JAKARTA. Bank Indonesia (BI) held its benchmark interest rate using the BI 7-Day Reverse Repo Rate (BI7DRR) instrument at 6.00%. The decision was made at the BI Board of Governors (BOG) Meeting which took place on November 22-23, 2023.
In its written statement, BI stated that this step was consistent with the policy of stabilizing the exchange rate from the impact of high global uncertainty.
In addition, this decision is also a measure to mitigate the impact of imported goods inflation that could occur in the future. BI targets the inflation rate in the country to be under control at the level of 3.0±1% in 2023 and 2.5±1% in 2024.
In addition to holding the BI7DRR, the monetary authority also decided to hold the deposit facility rate at 5.25% and the lending facility rate at 6.75%.
In general, BI assesses that Indonesia's economic conditions in the fourth quarter will remain good. BI reasoned that this could be seen from several indicators such as the consumer confidence index, income expectations, and the manufacturing purchasing manager's index (PMI).
Thus, BI estimates that economic growth in 2023 will be in the range of 4.5% to 5.3%. Meanwhile, economic growth in 2024 is predicted to increase because it is supported by the implementation of elections and good consumer confidence. (ASP/KEN)
