Jakarta, CNBC Indonesia – Bank Indonesia (BI) decided to lower the benchmark interest rate. This is beyond the expectations of market participants.
On Thursday (19/11/2020), the November 2020 edition of the BI Board of Governors decided to lower the BI 7 Day Reverse Repo Rate by 25 basis points (bps) to 3.75%. Meanwhile, the Deposit Facility rate fell to 3% and the Lending Facility rate is now at 4.5%.
“This decision takes into account the predicted low inflation, maintained external stability and recovery measures for national economists,” said Perry Warjiyo, Governor of BI, at a press conference after the RDG.
This was not expected by market participants. The consensus gathered by CNBC Indonesia and Reuters resulted in the BI 7 Day Reverse Repo Rate projection to remain at 4%.
This means that the benchmark interest rate changes for the first time since July or in four months. The BI 7 Day Reverse Repo Rate is now at its lowest position since it was introduced in August 2016 to replace the BI Rate.
(aji / aji)
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