ID :
48950
Wed, 03/04/2009 - 18:33
Auther :
Shortlink :
https://www.oananews.org//node/48950
The shortlink copeid
BI LOWERS BENCHMARK RATE TO 7.75 PCT
Jakarta, March 4 (ANTARA) - Bank Indonesia (BI, the central bank) announced on Wednesday its board of governors has decided to to cut the bank's benchmark rate by 50 basis points from 8.25 percent to 7.75 percent.
"The decision was taken after BI made an overall evaluation on developments in the economic and financial fields at home and abroad, particularly with regard to the protracted global economic crisis," the BI said in a press release.
It said global economic developments still showed a deeper slump as reflected by the fact that the economic crisis in the developed countries had gone deeper than previously expected.
The BI said the global financial market was also still weak in line with increasing reports of losses by world financial institutions.
According to BI, the slowing down of the world economy would affect Indonesia's exports which would eventually affect Indonesia's economy as a whole.
Th worsening of the global financial conditions would create negative sentiment towards countries in emerging markets with the potential of creating pressure on the economies of a number of countries, including Indonesia.
It said that the decline in export performance also created pressure on Indonesia's balance of payments, although it was still on a safe level.
The country's foreign exchange reserves at present were still recorded at US$50.56 billion or equivalent to the amount needed to finance imports and pay external debts for 5.4 months.
The foreign exchange reserves will increase with the proceeds of the government's global bond sale worth US$3 billion.
In the meantime, inflationary pressures in February were still relatively low, namely 0.21 percent, which is far lower than its historic rate, so that the year-on-year (YOY) inflation in January was recorded at 8.6 percent.
Bank Indonesia will always keep an eye on the financial and economic developments in order to enable it to take appropriate steps to strengthen domestic economy and marcro-economic stability as well as the financial system.***
"The decision was taken after BI made an overall evaluation on developments in the economic and financial fields at home and abroad, particularly with regard to the protracted global economic crisis," the BI said in a press release.
It said global economic developments still showed a deeper slump as reflected by the fact that the economic crisis in the developed countries had gone deeper than previously expected.
The BI said the global financial market was also still weak in line with increasing reports of losses by world financial institutions.
According to BI, the slowing down of the world economy would affect Indonesia's exports which would eventually affect Indonesia's economy as a whole.
Th worsening of the global financial conditions would create negative sentiment towards countries in emerging markets with the potential of creating pressure on the economies of a number of countries, including Indonesia.
It said that the decline in export performance also created pressure on Indonesia's balance of payments, although it was still on a safe level.
The country's foreign exchange reserves at present were still recorded at US$50.56 billion or equivalent to the amount needed to finance imports and pay external debts for 5.4 months.
The foreign exchange reserves will increase with the proceeds of the government's global bond sale worth US$3 billion.
In the meantime, inflationary pressures in February were still relatively low, namely 0.21 percent, which is far lower than its historic rate, so that the year-on-year (YOY) inflation in January was recorded at 8.6 percent.
Bank Indonesia will always keep an eye on the financial and economic developments in order to enable it to take appropriate steps to strengthen domestic economy and marcro-economic stability as well as the financial system.***
