Wednesday, September 27, 2023

Central Bank Lifts Benchmark Rate by 50 Points

Triyan Pangastuti
September 22, 2022 | 7:16 pm
Central Bank Governor Perry Warjiyo (Antara Photo)
Central Bank Governor Perry Warjiyo (Antara Photo)

Jakarta. Bank Indonesia hiked the benchmark interest rate by 50 points to 4.25 percent on Thursday to help ease pressures from the rising inflation weeks after the government raised the price of subsidized fuel products.

The move came a month after the central bank also raised the benchmark rate by 25 basis points.

Central Bank Governor Perry Warjiyo said the hike was decided as “preventive and forward-looking measures” against surging inflation and to keep the CPI from spiraling beyond the initial target of 3 percent by the end of the year.

"It also aims to strengthen policies on stabilizing the exchange rate of the rupiah in the face of the highly volatile global financial market as the domestic economic growth is increasingly gaining grounds,” Perry said.


Significant growth in private consumption post-Covid-19 pandemic restrictions will spur the economic growth to a projected 5.5 percent this quarter, he added.

“The consumption by the private sector enjoys a rapid growth due to an increase in income, financing availability, and stronger consumers’ confidence spurred by increasing people’s mobility,” he said.

According to the latest Bank Indonesia survey, several key indicators like consumers’ confidence, retail sales, and the purchasing managers' index have shown a very strong post-pandemic rebound, the central bank chief said without going into details.

Export sales are increasing because of growing global demands for certain commodities like crude palm oil, coals, iron, and steel, he said.

The central bank has predicted that the annual economic growth will reach between 4.5 percent and 5.3 percent this year.

Tags: Keywords:


News 5 hours ago

Prabowo in 'Final Phase' of Selecting Running Mate

Among the three possible candidates for the presidential race, Anies Baswedan was the first to unveil his running mate.
Lifestyle 6 hours ago

Female Officers Prohibited from Dyeing Hair Under New Police Directive

The directive also specifies that female officers are not allowed to adopt a crew-cut hairstyle like their male counterparts.
Business 8 hours ago

Agung Podomoro Sells Neo Soho Mall for Rp 1.4 Trillion

Agung Podomoro claimed the transaction would have no impact on the company's operations and business continuity.
Business 8 hours ago

CPO Producers Indonesia and Malaysia in Talks with India Amid EU Market Restrictions

Indonesia and Malaysia aimed to convey the message that they have long adhered to global standards for sustainable palm oil.
News 10 hours ago

Co-Defendant in Major Graft Trial Implicates Sports Minister Dito

The defendant, businessman Irwan Hermawan, informed the court that he had transferred Rp 27 billion to Dito through a messenger.