BI Governor Perry Warjiyo (Photo: Antara News)

Jakarta (VNA) – Bank Indonesia (BI) has kept its benchmark rate unchanged for five consecutive months to safeguard the country’s external balance.

Following a two-day board of governors meeting, the central bank announced on April 25 that it kept the seven-day reverse repo rate at 6 percent, and the deposit and lending facility rates were maintained at 5.25 and 6.75 percent, respectively.

BI Governor Perry Warjiyo said that the decision is in line with the central bank and government’s efforts to stabilise the economy, adding BI will monitor the latest development in Indonesia’s balance of payment accounts.

In addition, the bank also announced several policies to boost growth in domestic demand. Those include holding foreign exchange swap and repo term auctions more frequently, effective from May 6, lowering the cost of its Domestic Non-Deliverable Forward (DNDF) with transaction values up to 5 million USD.

BI is drafting a regulation for market operators in the domestic money and foreign exchange markets to increase transaction efficiencies in the market while developing a commercial securities market as an alternative source for short-term funding for corporations, Perry said.

The bank will continue encouraging more electronic transactions by carrying out various government programmes such as non-cash food assistance programme.-VNA