ID :
87988
Thu, 11/05/2009 - 12:13
Auther :
Shortlink :
https://www.oananews.org//node/87988
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BANK INDONESIA MAINTAINS KEY RATE AT 6.5 PERCENT
Jakarta, Nov 4 (ANTARA) - The board of governors of Bank Indonesia (BI/the central bank) decided on Wednesday to maintain the BI benchmark interest rate at 6.5 percent, a BI director said.
Human Relations and Strategic Planning Affairs Director of BI Dyah N. Makhijani said here on Wednesday the board of governors saw that the present 6.5 percent benchmark interest rate was still consistent with the inflation target at 5 plus minus 1 percent in 2010.
The BI governors also saw that the direction of monetary polices at present was still conducive for the process of economic recovery and the continuation of bank intermediation tasks.
The Indonesian economy still showed a good and improving performance until October 2009. On the external side, the country`s export performance was also expected to improve.
The good export performance was triggered by the recovery of the global economy and the increase in the prices of global commodities.
On the domestic side, private consumption remained strong in line with lower inflation and preserved consumers` confidence in the national economy`s prospects the days ahead.
With these developments, the development of Indonesia`s economy in the fourth quarter of 2009 is expected to experience a higher growth if compared with the previous quarter.
With regard to prices, inflation in October 2009 recorded a decline which was lower than its previous rates.
This was supported with the strengthening of of the rupiah value and the declining of the people`s expectation of inflation in the future as reflected in the constant drop in inflation.
Seeing that trend, the inflation in 2009 is expected to stay at a lower range of the target namely 4.5 percent minus 1 percent for the year-on-year basis (yoy)
Inflation in 2010 is expected to return to its normal pattern at the 5 plus minus 1 percent range in line with the strengthening of domestic economic activities and commodity prices.***2***
Human Relations and Strategic Planning Affairs Director of BI Dyah N. Makhijani said here on Wednesday the board of governors saw that the present 6.5 percent benchmark interest rate was still consistent with the inflation target at 5 plus minus 1 percent in 2010.
The BI governors also saw that the direction of monetary polices at present was still conducive for the process of economic recovery and the continuation of bank intermediation tasks.
The Indonesian economy still showed a good and improving performance until October 2009. On the external side, the country`s export performance was also expected to improve.
The good export performance was triggered by the recovery of the global economy and the increase in the prices of global commodities.
On the domestic side, private consumption remained strong in line with lower inflation and preserved consumers` confidence in the national economy`s prospects the days ahead.
With these developments, the development of Indonesia`s economy in the fourth quarter of 2009 is expected to experience a higher growth if compared with the previous quarter.
With regard to prices, inflation in October 2009 recorded a decline which was lower than its previous rates.
This was supported with the strengthening of of the rupiah value and the declining of the people`s expectation of inflation in the future as reflected in the constant drop in inflation.
Seeing that trend, the inflation in 2009 is expected to stay at a lower range of the target namely 4.5 percent minus 1 percent for the year-on-year basis (yoy)
Inflation in 2010 is expected to return to its normal pattern at the 5 plus minus 1 percent range in line with the strengthening of domestic economic activities and commodity prices.***2***
