ID :
18142
Fri, 09/05/2008 - 12:51
Auther :
Shortlink :
https://www.oananews.org//node/18142
The shortlink copeid
CENTRAL BANK GOVERNOR: RATE HIKE TO CONTROL DEMAND
Jakarta, Sept 5 (ANTARA) - Bank Indonesia (BI) governor Boediono said here on Thursday the central bank had decided to raise the BI rate by 25 basis points to 9.25 percent to control aggregate demand rise which could push price hike.
"It is aimed at controlling demand so that it will not jump," he said.
The central bank made the decision which was the fifth since May this year in a board of governors' meeting on Thursday.
The bank saw threats on the inflation were still strong forcing it to raise the key rate. "Until now pressures on the inflation remained strong as a result of fast demand growth," he said.
He said Bank Indonesia remained cautious over hike pressures on energy, food and commodity prices in the world market although they had already died down.
"Bank Indonesia still considered it important to maintain and secure demand so that it continued to grow within a safe corridor to assure achievement of targets and economic stability in general within a short term," he said.
To reach the goal he said Bank Indonesia would optimize the use of all policy instruments available
"It is aimed at controlling demand so that it will not jump," he said.
The central bank made the decision which was the fifth since May this year in a board of governors' meeting on Thursday.
The bank saw threats on the inflation were still strong forcing it to raise the key rate. "Until now pressures on the inflation remained strong as a result of fast demand growth," he said.
He said Bank Indonesia remained cautious over hike pressures on energy, food and commodity prices in the world market although they had already died down.
"Bank Indonesia still considered it important to maintain and secure demand so that it continued to grow within a safe corridor to assure achievement of targets and economic stability in general within a short term," he said.
To reach the goal he said Bank Indonesia would optimize the use of all policy instruments available
