JAKARTA (Yosefardi) – Bank Indonesia’s board of governors today decided to hold its benchmark BI Rate at 7.50%, setting the Deposit Facility rate at 5.50% and Lending Facility rate at 8.00%.
This decision is in line with the ongoing efforts to keep inflation within the target of 4±1% for 2015 and 2016, and to control current account deficit towards a healthier level at 2.5-3% of GDP in the medium term.
The global economic recovery has continued to progress, supported by the increasingly solid U.S. economy. While Indonesia’s economic growth in 2015 starts to improve and expected to be generally better than that in 2014.
BI said the full-year 2015 economic growth should be between 5.4-5.8%, mainly driven by higher investment as a result of the realized infrastructure projects and improved investment climate, in addition to the continued strong consumption and the gradually improving exports.