ID :
59109
Wed, 05/06/2009 - 10:57
Auther :
Shortlink :
https://www.oananews.org//node/59109
The shortlink copeid
BI : WORLD ECONOMY NOW CONTRACTING AT SLOWER PACE
Jakarta, May 5 (ANTARA) - The world economy is still contracting but improvements in certain economic indicators suggest the process is now taking place at a slower pace, Bank Indonesia (BI/the central bank) said.
"In Bank Indonesia's view, the world economy is still experiencing contraction but it is now happeing at a slower pace," Dyah NK Makhijani, BI's strategic planning and human relations director, said here on Tuesday.
She said the slowing down of the economic contraction was seen in the improvement of stock market indexes and a drastic fall in the risk premium spread.
BI was of the view that the drastic drop in risk premium spread had fueled the return of capital to emerging markets, including Indonesia with its positive impact on the strengthening of the rupiah, stock indexes and state debentures' yields.
The world economy which is showing an improvement had also enabled a better export performance as compared with the initial prediction. For growth at home, Bank Indonesia believed it would be within a range of 5-7 percent.
Besides that, Bank Indonesia also viewed that the domestic banking world was still in a strong and stable position with a capital adequacy ratio reaching 17.4 percent and non-performing loans of five percent.
The composite index at the opening of the Jakarta Stock Exchange (BEI) on Tuesday increased 1.03 percent as share trading by local and foreign buyers continued to increase.
The board of governors of Bank Indonesia (BI/the central bank) decided on Tuesday to lower the bank's benchmark rate (BI Rate) by 25 basis points to 7.25 percent.
Since December 2008, the BI rate has been cut by 2.25 basis points to 7.5 percent.
The BI rate cut this month by 0.25 basis has previously been predicted by several analysts after seeing the downward trend in inflation.
The Central Bureau of Statistics announced recently that Indonesia experienced a deflation rate of 0.31 percent in April 2009, where based on the calendar year (January-April) it was noted at 0.05 percent. Inflation based on the annual basis reached 7.31 percent.
"In Bank Indonesia's view, the world economy is still experiencing contraction but it is now happeing at a slower pace," Dyah NK Makhijani, BI's strategic planning and human relations director, said here on Tuesday.
She said the slowing down of the economic contraction was seen in the improvement of stock market indexes and a drastic fall in the risk premium spread.
BI was of the view that the drastic drop in risk premium spread had fueled the return of capital to emerging markets, including Indonesia with its positive impact on the strengthening of the rupiah, stock indexes and state debentures' yields.
The world economy which is showing an improvement had also enabled a better export performance as compared with the initial prediction. For growth at home, Bank Indonesia believed it would be within a range of 5-7 percent.
Besides that, Bank Indonesia also viewed that the domestic banking world was still in a strong and stable position with a capital adequacy ratio reaching 17.4 percent and non-performing loans of five percent.
The composite index at the opening of the Jakarta Stock Exchange (BEI) on Tuesday increased 1.03 percent as share trading by local and foreign buyers continued to increase.
The board of governors of Bank Indonesia (BI/the central bank) decided on Tuesday to lower the bank's benchmark rate (BI Rate) by 25 basis points to 7.25 percent.
Since December 2008, the BI rate has been cut by 2.25 basis points to 7.5 percent.
The BI rate cut this month by 0.25 basis has previously been predicted by several analysts after seeing the downward trend in inflation.
The Central Bureau of Statistics announced recently that Indonesia experienced a deflation rate of 0.31 percent in April 2009, where based on the calendar year (January-April) it was noted at 0.05 percent. Inflation based on the annual basis reached 7.31 percent.
