Last month, BI adopted the new set of policy rates that consist of BI 7-Day RR accompanied by new corridor of Lending Facility and Deposit Facility, each 75 bps above and below BI 7-day RR. We applaud this move. It will make BI’s direction of policy to be easier to understand by the market. Additionally, market now can evaluate whether BI achieves its short term interest rate target, i.e. the BI 7- day RR Rate in every month.

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