Indonesia Central Bank Keeps Benchmark Interest Rate at 3.5%

[Asia Economy Reporter Onyu Lim] The Bank of Indonesia (BI) has decided to keep its benchmark interest rate unchanged.

On the 25th (local time), the central bank decided to maintain the 7-day reverse repurchase agreement rate at 3.50%. The purpose is to support the economy, which has been hit by COVID-19, by maintaining financial market stability.

In a survey conducted by The Wall Street Journal (WSJ) of seven economists, they also expected Indonesia to keep the benchmark interest rate unchanged to stabilize the rupiah exchange rate.

The bank also maintained the one-day deposit rate and lending rate at 2.75% and 4.25%, respectively.