Indonesia’s central bank holds benchmark interest rate at 3.5%

Bank Indonesia, the country’s central bank, has decided to maintain the benchmark interest rate at 3.5 per cent.

“This decision is in line with the need to maintain the stability of the exchange rate and the financial system amid low inflation

forecasts,” Bank Indonesia’s Governor Perry Warjiyo said in a virtual press conference.

Likewise, the deposit facility interest rate remains at 2.75 per cent and the lending facility interest rate remains at 4.25 per cent, Xinhua news agency reported.

The central bank estimates that the economic growth of the Southeast Asian country in 2022 will improve, as mobility increases after the acceleration of Covid-19 vaccination and the recovery of various economic sectors.

Bank Indonesia continues to optimize all policies to maintain macroeconomic and financial system stability as well as to support further economic improvement efforts, Warjiyo said.