ID :
58921
Tue, 05/05/2009 - 08:25
Auther :
Shortlink :
https://www.oananews.org//node/58921
The shortlink copeid
OBSERVER: BI RATE SHOULD BE CUT
Jakarta, May 4 (ANTARA) - Economic observer from state University of Gajahmada in Yogyakarta, Sri Adiningsih, said here on Monday the BI Rate should be cut because there had been deflation in April.
The Central Bureau of Statistics recorded a deflation of 0.31 percent in April bringing the inflation rate in the calendar year between January and April 2009 to 0.05 percent and the yearly inflation rate to 7.32 percent.
"Only April saw deflation and therefore the reference rate must be adjusted," she said when asked on the issue before leaving for Xiamen, China.
She said the cut in the key interest rate would affect development in the banking sector among others increasing credits. She said however that credits would only increase if general banks adhered to the rate that had been issued by Bank Indonesia (BI), the central bank.
"So far many banks would not follow the BI rate. With regard to it supervision must be boosted," she said.
She said she hoped all banks would follow the rate set by BI to increase bank credits. "If all banks follow the BI rate, credits will rise and certainly affect the real sector," she said.
At present the BI rate is 7.50 percent and is predicted to drop between 25 and 50 basis points. According to plans BI will cut its rate in line with improving economic conditions in Indonesia.
The Central Bureau of Statistics recorded a deflation of 0.31 percent in April bringing the inflation rate in the calendar year between January and April 2009 to 0.05 percent and the yearly inflation rate to 7.32 percent.
"Only April saw deflation and therefore the reference rate must be adjusted," she said when asked on the issue before leaving for Xiamen, China.
She said the cut in the key interest rate would affect development in the banking sector among others increasing credits. She said however that credits would only increase if general banks adhered to the rate that had been issued by Bank Indonesia (BI), the central bank.
"So far many banks would not follow the BI rate. With regard to it supervision must be boosted," she said.
She said she hoped all banks would follow the rate set by BI to increase bank credits. "If all banks follow the BI rate, credits will rise and certainly affect the real sector," she said.
At present the BI rate is 7.50 percent and is predicted to drop between 25 and 50 basis points. According to plans BI will cut its rate in line with improving economic conditions in Indonesia.
