ID :
93123
Fri, 12/04/2009 - 09:22
Auther :
Shortlink :
https://www.oananews.org//node/93123
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BI KEEPS KEY RATE AT 6.5 PCT
Jakarta, Dec 3 (ANTARA) - Bank Indonesia (BI) decided at a meeting of its board of governors Thursday to maintain its benchmark rate at 6.5 percent for the fifth month in a row since August.
The central bank governors arrived at the decision after evaluating the country`s economic performance in 2009 and its economic prospects, the head of the bank`s strategic planning and public relations directorate, Dyah NK. Makhijani, said after the meeting.
She said the bank`s move to relax its monetary policy by cutting the key rate (locally known as BI Rate) by 300 basis points was to encourage economic recovery and banks to perform their intermediary function.
The 6.5 percent BI Rate was still consistent with the bank`s inflation rate target of 5 plus and minus 1 percent for 2010, she said.
The board noted that the Indonesian economy this year proved to be strong enough to weather the global economic crisis, she said.
The relaxed monetary policy and fiscal stimulus package aimed at bolstering the domestic economy had raised consumer confidence so that household consumption grew at a relatively high pace this year, she said.
The bank believed the improving domestic economy, coupled with nascent global economic recovery and economic players` growing confidence would be a firm basis for the country`s efforts to achieve high economic growth.
The bank predicted the domestic economy would grow by 4.3 percent in 2009, by 5-5.5 percent in 2010 and 6-6.5 percent in 2011.***2***
The central bank governors arrived at the decision after evaluating the country`s economic performance in 2009 and its economic prospects, the head of the bank`s strategic planning and public relations directorate, Dyah NK. Makhijani, said after the meeting.
She said the bank`s move to relax its monetary policy by cutting the key rate (locally known as BI Rate) by 300 basis points was to encourage economic recovery and banks to perform their intermediary function.
The 6.5 percent BI Rate was still consistent with the bank`s inflation rate target of 5 plus and minus 1 percent for 2010, she said.
The board noted that the Indonesian economy this year proved to be strong enough to weather the global economic crisis, she said.
The relaxed monetary policy and fiscal stimulus package aimed at bolstering the domestic economy had raised consumer confidence so that household consumption grew at a relatively high pace this year, she said.
The bank believed the improving domestic economy, coupled with nascent global economic recovery and economic players` growing confidence would be a firm basis for the country`s efforts to achieve high economic growth.
The bank predicted the domestic economy would grow by 4.3 percent in 2009, by 5-5.5 percent in 2010 and 6-6.5 percent in 2011.***2***
