ID :
18047
Thu, 09/04/2008 - 14:31
Auther :
Shortlink :
http://m.oananews.org//node/18047
The shortlink copeid
BI RAISES RATE BY 25 BASIS POINTS TO 9.25 PERCENT
Jakarta, Sept 4 (ANTARA) - Bank Indonesia (BI)'s board of governors decided on Thursday to raise its benchmark interest rate by 25 basis points from 9.0 percent to 9.25 percent.
BI Governor Boediono told the press that the central bank had decided to increase its reference rate, locally known as BI Rate, due to inflationary pressures which were still high until now.
Observers have said that the inflation this month would increase fueled by basic necessaries' price hikes in the face of Lebaran post-fasting month festivities.
Economic Observer Aviliani of the Institute for Development of Economics and Finance (Indef) said earlier the inflation was expected to be relatively high in the months ahead due to an expected surge by about 10-25 percent in basic necessaries' prices.
The August inflation declined to 0.51 percent from 1.37 percent in July, but observer predicted that it will likely increase to about 25 percent in September.
The Indonesian central bank last month raised its benchmark interest rate (BI rate) by 25 basis points from 8.75 percent to 9.00 percent in an effort to offset the upward trend in inflation.
The government is determined to maintain the year-on-year inflation rate at 11.25 percent.
BI Governor Boediono told the press that the central bank had decided to increase its reference rate, locally known as BI Rate, due to inflationary pressures which were still high until now.
Observers have said that the inflation this month would increase fueled by basic necessaries' price hikes in the face of Lebaran post-fasting month festivities.
Economic Observer Aviliani of the Institute for Development of Economics and Finance (Indef) said earlier the inflation was expected to be relatively high in the months ahead due to an expected surge by about 10-25 percent in basic necessaries' prices.
The August inflation declined to 0.51 percent from 1.37 percent in July, but observer predicted that it will likely increase to about 25 percent in September.
The Indonesian central bank last month raised its benchmark interest rate (BI rate) by 25 basis points from 8.75 percent to 9.00 percent in an effort to offset the upward trend in inflation.
The government is determined to maintain the year-on-year inflation rate at 11.25 percent.
