ID :
14862
Mon, 08/04/2008 - 15:36
Auther :
Shortlink :
http://m.oananews.org//node/14862
The shortlink copeid
BI ADVISED TO ABANDON CLASSICAL POLICIES TO CURB INFLATION
Jakarta, Aug 4 (ANTARA) - The National Development Planning Agency (Bappenas) has expressed hope Bank Indonesia (the central bank/BI) will no longer take classical steps by tightening monetary policies and raising interest rates to anticipate high inflation pressure until the end of this year.
"If interest rates go up, the real sector will stagnate. BI must give a priority to the people's economy," Bappenas Chief Paskah Suzetta, who is also state minister for national development planning said here on Monday.
He said BI should be able to take wise steps although a number of countries had of late tended to tighten monetary policies to curb high inflation rates driven by global energy and food crises and financial turbulence.
The government's efforts to restore the people's purchasing power worsened by last May's 28.7 percent fuel price hikes by, among other things, providing the poor with direct cash assistance (BLT) still did little to rescue their economy, he said.
"This is still far from enough. Imagine the fuel oil price hikes have driven up the prices of consumer goods by 3-4 percent. Neither direct cash assistance nor subsidized rice for the poor matches the rising cost of living," he said.
"If interest rates go up, the real sector will stagnate. BI must give a priority to the people's economy," Bappenas Chief Paskah Suzetta, who is also state minister for national development planning said here on Monday.
He said BI should be able to take wise steps although a number of countries had of late tended to tighten monetary policies to curb high inflation rates driven by global energy and food crises and financial turbulence.
The government's efforts to restore the people's purchasing power worsened by last May's 28.7 percent fuel price hikes by, among other things, providing the poor with direct cash assistance (BLT) still did little to rescue their economy, he said.
"This is still far from enough. Imagine the fuel oil price hikes have driven up the prices of consumer goods by 3-4 percent. Neither direct cash assistance nor subsidized rice for the poor matches the rising cost of living," he said.
