BI Rises BI Rate to 5.5%

The Bank of Indonesia (BI) decided to raise its benchmark interest rate or the BI Rate, by 25 basis points (bps) to 5.5% on Tuesday (9th June) as the result of depreciated Rupiah above Rp18,000 per US Dollar. Similarly, the Deposit Facility rate and the Lending Facility were also increased by 25 bps to 4.5% and 6.25%, respectively. The increase was the next step to strengthen Rupiah’s exchange rate from the effect of escalating global turmoil due to the tension in the Middle East.