Indonesia: BI keeps rates unchanged in final monetary policy meeting

• The Bank Indonesia Board of Governors Meeting (RDG) decided to maintain the BI 7-Day Reverse Repo Rate (BI7DRR) at 3.50%, the Deposit Facility interest rate at 2.75%, and the Lending Facility interest rate at 4.25%.
• Monetary policy in 2022 will be oriented towards maintaining stability, while pro-growth macroprudential and payment system policies will focus on driving economic growth together with money market deepening as well as an inclusive and green economy and finance.
• Bank Indonesia expects the domestic economic recovery process to endure and accelerate in 2022. Economic growth is projected to improve in 4Q21 in line with increasing mobility after the Government successfully introduced measures to break the domestic chain of Delta variant transmission.
• Overall, economic growth in 2021 remains in line with Bank Indonesia’s projection, namely 3.2-4.0%. Bank Indonesia, therefore, projects stronger domestic economic growth in 2022 in the 4.7-5.5% range.
• Bank Indonesia projects a current account in the surplus 0.3% to deficit 0.5% of GDP range in 2021 and deficit 1.1%-1.9% of GDP in 2022, thus supporting external sector resilience in Indonesia.
• Inflation is projected below the lower bound of the 3.0%±1% target corridor in 2021 and within the target range in 2022.
• The Capital Adequacy Ratio (CAR) in the banking industry remained high in October 2021 at 25.30%, with persistently low NPL ratios of 3.22% (gross) and 1.02% (nett).

External Link : https://www.bi.go.id/id/publikasi/ruang-media/news-release/Pages/sp_2333221.aspx/