REPUBLIKA.CO.ID, JAKARTA - Bank Indonesia finally increased the interest rate of deposit facility or fasbi rate, from four percent to 4.25 percent. The decision was taken in a Board of Governors Meeting on Tuesday and it is impelemented on Wednesday.
"BI took steps to stabilize monetary conditions links to the weakness of exchange rate lately," Executive Director of Communication Department at BI, Difi A Johansyah said on Wednesday.
BI will also continue to meet the needs of foreign exchange liquidity in the market. The step is a preemptive effort in maintaining monetary stability.
Senior economist at Mandiri Securities, Aldian Taloputra, assessed that BI tried to stabilize the IDR. Because, BI will face large pressure on foreign exchange reserves if they still depend on intervention. The increase of fasbi rate signaled that BI would keep the liquidity in order to stabilize the exchange rate. Meanwhile, BI is still holding BI rate and waiting the final decision of fuel price hike.
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