ID :
29530
Tue, 11/11/2008 - 14:09
Auther :
Shortlink :
http://m.oananews.org//node/29530
The shortlink copeid
BI PREDICTED TO RAISE BENCHMARK RATE THIS YEAR
Jakarta, Nov 11 (ANTARA) - Money market observer Edwin Sinaga has predicted that Bank Indonesia (BI/the central bank) will once again raise its benchmark interest rate at the end of the year.
"BI will raise its reference rate in order to maintain the stability of the rupiah exchange rate. BI's foreign exchange reserves has been depleted in the last several months because of its market intervention," Sinaga said here on Tuesday.
Sinaga who is also president director of Finance Corpindo said BI feared its market intervention would continue to deplete its foreign exchange reserves so that it would seek for another alternative to offset dollar speculative buying.
Bank Indonesia decided last week to maintain its present benchmark interest rate at 9.5 percent after conducting an assessment on the country's present economic conditions.
BI Governor Boediono said that Bank Indonesia deemed it important to continue pursuing an accurate monetary policy to achieve balance between economic growth and monetary stability.
He said BI was of the view that despite diminishing inflationary pressures, the year-on-year inflation rate had remained high, namely 11.77 percent.
"BI will raise its reference rate in order to maintain the stability of the rupiah exchange rate. BI's foreign exchange reserves has been depleted in the last several months because of its market intervention," Sinaga said here on Tuesday.
Sinaga who is also president director of Finance Corpindo said BI feared its market intervention would continue to deplete its foreign exchange reserves so that it would seek for another alternative to offset dollar speculative buying.
Bank Indonesia decided last week to maintain its present benchmark interest rate at 9.5 percent after conducting an assessment on the country's present economic conditions.
BI Governor Boediono said that Bank Indonesia deemed it important to continue pursuing an accurate monetary policy to achieve balance between economic growth and monetary stability.
He said BI was of the view that despite diminishing inflationary pressures, the year-on-year inflation rate had remained high, namely 11.77 percent.
