Russia-Ukraine War, BI Holds Reference Interest Rate for the 14th Time
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Bank Indonesia (BI) has decided to maintain the benchmark interest rate (BI 7-Day Reverse Repo Rate) at 3.5%. In addition, BI is maintaining the Deposit Facility rate at 2.75% and the Lending Facility rate at 4.25%.
This decision is in line with efforts to maintain exchange rate and inflation stability, and also aims to continue to encourage economic growth amid the geopolitical tensions between Russia and Ukraine.
Global economic recovery is expected to be lower than previously forecast amid uncertainty in financial markets and the political tensions between Russia and Ukraine. These tensions are exacerbated by the sanctions imposed by various countries on Russia.
This has impacted trade transactions, commodity price movements, and global financial markets. Furthermore, the world is still grappling with the spread of the Omicron variant of Covid-19.
Nevertheless, BI stated that domestic economic growth is expected to remain strong. This is due to the Indonesian economy being supported by improvements in household consumption and non-building investment. Furthermore, government consumption growth is expected to remain positive.
"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."
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