BI Rate Cut 50 bps to 8.25% - Bank Sentral Republik Indonesia
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April 18, 2019

No. 11/3/PSHM/Humas

Today, following a comprehensive evaluation of the economic and financial situation in Indonesia and worldwide, the Board of Governors of Bank Indonesia decided to lower the BI Rate 50 bps to 8.25%.

Recent indicators show that the global economy faces considerably harder times than predicted a few months ago. In Indonesia, the impact is bearing down with increasing severity on tradable sectors. However, in non-tradable sectors, performance is relatively stable.

Growth in bank lending and the M1 and M2 monetary aggregates has slowed from the high rates of growth charted in the second half of 2008. Inflationary pressure is easing. The CPI has now recorded two consecutive months of decline (December 2008 and January 2009).

International reserves at end-January 2009 stood at USD 50.9 billion, equivalent to 5.2 months of imports and servicing of official foreign debt.

The Indonesian banking system remains in strong condition with the CAR and NPLs within safe limits. At the same time, banking liquidity, including liquidity flows on the interbank money market, is showing improvement in comparison to recent months.

Bank Indonesia will pursue the necessary measures for further strengthening of the Indonesian banking sector, including the management of essential liquidity and improvements in the mechanisms and system for bank supervision.

A full report on the deliberations of the Board of Governors for February 2009, presenting the latest developments in monetary conditions, inflation and the exchange rate, will be presented in the Bank Indonesia Monetary Policy Review (MPR). This report may be accessed on the Bank Indonesia website (http://www.bi.go.id) from 9 February 2009.

Jakarta, 4 February 2009


Dyah N.K. Makhijani
Director

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