The Bank Indonesia kept its key 7-day reverse repurchase rate unchanged at a record low of 3.5% on June 17th 2021, where it has been since its meeting in February, as widely expected. The decision reflects the Bank’s commitment to supporting the domestic recovery amid low inflation, while also maintaining the stability of the rupiah amid the volatility in global financial markets. The central bank maintained its growth forecast for 2021 at 4.1% to 5.1%. At the same time, inflation is seen within the 2% to 4% target range. The overnight deposit facility and lending facility rates were also left at 2.75% and 4.25%, respectively.
