ID :
28737
Thu, 11/06/2008 - 17:37
Auther :
Shortlink :
https://www.oananews.org//node/28737
The shortlink copeid
BI MAINTAINS BENCHMARK RATE AT 9.5 PERCENT
Jakarta, Nov 6 (ANTARA) - Bank Indonesia (BI/the central bank) decided on Thursday to maintain its present benchmark interest rate at 9.5 percent after it conducting an assessments on the country's present economic conditions, BI Governor Boediono said.
"Bank Indonesia deems it important to continue pursuing an accurate monetary polices to achieve balance between economic growth and monetary stability," Boediono said here on Thursday.
He said BI was of the view that despite diminishing inflationary pressures, the year-on-year inflation rate had remained high, namely 11.77 percent.
The BI governor made the remarks in reading the conclusions of the results of a BI board of governors meeting on Thursday.
Boediono said the risk of inflationary pressures rising again in the next two months was predicted to be still high. It was also predicted the year-on-year inflation rate would be recorded at 11.5 - 12.5 percent at the end of the year.
On the weakening of the rupiah against the US dollar, BI had been giving a cautious response in an effort to withstand sharp fluctuations.
"Bank Indonesia will always adopt the necessary policies in an effort to curb sharp fluctuations in he rupiah's value against the greenback," the BI governor said.
He said that the obviously increased slow-down in the global economy as a result of the global financial crisis should be responded to with accurate measures.
"For this purpose, Bank Indonesia will resort to all existing monetary policy instruments while continuing to make coordinative efforts with the government in observing closely the developments of domestic, regional and global economic prospects, particularly in an effort to safeguard short-term economic stability" Boediono said.
In the meantime, the central bank has in the whole year of 2008 raised its benchmark interest rate by a total of 150 basis points.
Within January and April 2008, the BI reference interest rate was recorded at 8 percent. It began to be increased in the May-October 2008 period.
In May 2008, the BI rate was raised 0.25 basis points to 8.25 percent. It was later raised several times and in October it was increased to the present 9.5 percent level.
"Bank Indonesia deems it important to continue pursuing an accurate monetary polices to achieve balance between economic growth and monetary stability," Boediono said here on Thursday.
He said BI was of the view that despite diminishing inflationary pressures, the year-on-year inflation rate had remained high, namely 11.77 percent.
The BI governor made the remarks in reading the conclusions of the results of a BI board of governors meeting on Thursday.
Boediono said the risk of inflationary pressures rising again in the next two months was predicted to be still high. It was also predicted the year-on-year inflation rate would be recorded at 11.5 - 12.5 percent at the end of the year.
On the weakening of the rupiah against the US dollar, BI had been giving a cautious response in an effort to withstand sharp fluctuations.
"Bank Indonesia will always adopt the necessary policies in an effort to curb sharp fluctuations in he rupiah's value against the greenback," the BI governor said.
He said that the obviously increased slow-down in the global economy as a result of the global financial crisis should be responded to with accurate measures.
"For this purpose, Bank Indonesia will resort to all existing monetary policy instruments while continuing to make coordinative efforts with the government in observing closely the developments of domestic, regional and global economic prospects, particularly in an effort to safeguard short-term economic stability" Boediono said.
In the meantime, the central bank has in the whole year of 2008 raised its benchmark interest rate by a total of 150 basis points.
Within January and April 2008, the BI reference interest rate was recorded at 8 percent. It began to be increased in the May-October 2008 period.
In May 2008, the BI rate was raised 0.25 basis points to 8.25 percent. It was later raised several times and in October it was increased to the present 9.5 percent level.
