The global economy has the potential to grow at a higher rate than previously projected, and improvement in the domestic economy may also continue.

In response to these developments and the overall assessment results, Bank Indonesia (BI), in the Board of Governors Meeting on  March 17-18, 2021, decided to maintain the BI 7-Day Reverse Repo Rate (BI7DRR) at 3.50%, and the Deposit Facility interest rate at 2.75. %, and the Lending Facility rate of 4.25%.

"Going forward, to further support national economic recovery, Bank Indonesia will further optimize accommodative macroprudential policies, accelerate money market deepening, support international policies, and digitize the payment system," BI said in the March 2021 Monetary Policy Review report, published on Monday (22 / 3).

Bank Indonesia took policy steps as a follow-up to the Financial System Stability Committee (KSSK) in an Integrated Policy Package for Increasing Business Financing. In line with Bank Indonesia's accommodative monetary policy and synergy with the government's fiscal policy to promote national economic recovery, liquidity conditions in the banking and financial markets remain loose.

The decline in monetary policy interest rates and loosening liquidity pushed interest rates down further, even though the decrease in bank lending rates needed to be encouraged. The prime lending rate (PLR) of state-owned banks is expected to decline in line with the announced reduction plans.

"Bank Indonesia hopes that other banks can also accelerate the reduction of credit interest rates as a joint effort to encourage credit/financing for the business world and national economic recovery," he added.