JAKARTA (Yosefardi) – Bank Indonesia’s board of governors decided to keep the benchmark BI rate at 7.5%, for four consecutive months, consistent with the implementation of tight monetary policy.
The rate of lending and deposit facility is also maintained at 7.5% and 5.75% respectively.
“The decision aims to lead the inflation to 4.5% plus minus 1% this year and next year as well as to lower current account deficit to its ideal level,” BI said in a statement
BI also assesses that global economic recovery is improving amid the persistent uncertainty of global financial market.
The Indonesian economy grew by 5.72% year-on-year in fourth quarter of 2014, compared to 5.63% in previous quarter.
BI predicts the national economy to grow by 5.8% to 6.2% this year inline with expected further domestic demand growth, coupled with improving export as global economy is recovering.