Bank Indonesia (BI) decided to once again cut the BI 7 Days Reverse Repo Rate (BI 7-DRRR) benchmark interest rate. In BI’s February 2021 Board of Governors Meeting, BI 7-DRRR for the February 2021 period is trimmed by 25bps to 3.5%. This decision is in line with the projected low inflation, and Rupiah exchange rate stability. Cuts to the benchmark rate also support the momentum for Indonesia’s economic recovery. As a note, BI 7-DRRR is currently on its historic low after booking its lowest rate in November 2020 at 3.75%. Other than slashing the benchmark interest rate, BI also decreased deposit facility and lending facility interest rates by 25 bps each to 2.75% and 4.25%.
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