Can Credit Distribution Be Stimulated With Lowest BI Rate?
Bank Indonesia announced that the BI 7-Day Reverse Repo Rate (BI7DRR) fell 25 basis points to 3.75 percent after the Board of Governors Meeting on 18-19 November 2020. BI also lowered the Deposit Facility rate to three percent and the Lending Facility rate to 4.5 percent.
This 3.75 percent reference interest rate is the lowest level since the BI-7DRR was implemented in Indonesia on April 21, 2016. This is also the lowest level of all time. "BI together with the government and the Financial Services Authority [OJK] have been very accommodating in accelerating economic recovery. We hope that banks and the business world can jointly build optimism," BI Governor Perry Warjiyo said on Thursday (19/11).