Jakarta (ANTARA News) - Indonesia's central bank plans to introduce a new monetary policy instrument next year, a newly appointed deputy governor of Bank Indonesia told reporters on Thursday.
Budi Mulya said the central bank will use the reference interest rate, known as the BI rate , as the benchmark for the overnight rate instead of the one-month rate currently.
"Regarding the benchmark, the policy rate for one month will be changed to the overnight rate. Therefore the central bank will monitor the development in the interbank money market," Mulya was quoted by Reuters as saying after a ceremony to mark his installment.
"We are also considering adding the SBI (Bank Indonesia certificates) tenor with 6-, 9- and possibly 12-months," he said, adding that an announcement would be made at a bankers' dinner in January.
Mulya did not elaborate on the reason for the changes.
Bank Indonesia introduced the BI rate in July, 2005, when the central bank emphasised the focus of its monetary policy to control inflation.
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