Indonesia's central bank holds its interest rate at 3.5 pct

2021-07-22 10:35:26 GMT2021-07-22 18:35:26(Beijing Time) Xinhua English

JAKARTA, July 22 (Xinhua) -- The two-day meeting of the Board of Governors of Bank Indonesia decided to hold its benchmark interest rate at 3.5 percent, to maintain stability in the rupiah exchange rate and the financial system amid global financial market uncertainty due to the COVID-19 pandemic, said Bank Indonesia Governor Perry Warjiyo on Thursday.

"Bank Indonesia also maintains the deposit facility interest rate at 2.75 percent, and lending facility interest rate at 4.25 percent," Warjiyo told a virtual press conference.

Domestic economic growth is estimated at 3.5 to 4.3 percent, lower than the previous projection of 4.1 to 5.1 percent, due to the increasing spread of the Delta variant, Warjiyo said.

Warjiyo said that Bank Indonesia would optimize the overall policy mix to maintain the macroeconomic and financial system stability. Enditem