BCA views BI-Rate hike as strategic move to safeguard rupiah

PT Bank Central Asia Tbk (BCA) considers Bank Indonesia’s (BI) decision to raise its benchmark interest rate (BI-Rate) a strategic move to respond to global economic dynamics and rupiah exchange rate movements. The company will continue to monitor the impact of the monetary policy on economic conditions and the banking industry. “We view this decision as a strategic step by BI in responding to global economic dynamics and rupiah exchange rate movements,” said BCA EVP Corporate Communication & Social Responsibility Hera F. Haryn in Jakarta, Wednesday. Bank Indonesia, through its weekly Board of Governors Meeting on Tuesday, decided to raise the BI-Rate by 25 bps to 5.50 percent. According to Hera, BCA consistently monitors the development of the benchmark interest rate along with various other macroeconomic indicators, including potential risks, banking liquidity conditions, and market dynamics influenced by supply and demand factors. These factors are taken into consideration by the company in maintaining a balance between liquidity adequacy and healthy credit expansion. “Simultaneously, BCA always conducts periodic reviews and pays attention to lending rates at levels acceptable to the market and considers people’s purchasing power,” she said. Going forward, the company will continue to encourage quality lending while prioritising the principle of prudence and the implementation of disciplined risk management.