Jan 14, 2011

Bank Indonesia Find Left Pas Raise Interest Rates

Bank Indonesia (BI) will search for the right time to raise the benchmark interest rate (BI Rate). BI see the tendency of inflation will continue to come sooner or later so that core inflation (core inflation) will also be affected.

That said central bank governor Nasution said here on Friday (14 / 1). "We see this inflationary tendency will continue to come so that sooner or later he will touch the core inflation. We ourselves are getting ready to look for an appropriate time to raise the BI rate.

Nasution himself could not answer how the BI rate increase that will be done. He said that it would not rush to raise the BI rate due to pressure other parties because BI has its own analysis.

He explained that the increase in the BI rate, the BI will see the movement of inflation in line with the movement of the rupiah. "So to a certain inflation rate, exchange rate it was this, the BI rate this hour.

BI will continue to drive the rupiah allowed to increase to a certain extent in accordance with the impact on trading activity. Nasution said that it would continue to pay attention to Indonesia's trade with its main trading partners. Everything is measurable so that trade in Indonesia was not harmed.

We will continue to look for a combination of pas-calibration of how the BI rate should be, exchange rate, how the combination with makroprudensial the elements can vary.

In addition to the BI rate, the BI itself has prepared a variety of exchange rate policy mix, policy rate, and policies to address the excess liquidity makroprudensial. "BI itself there will be restrictions on vostro accounts, reserves (statutory reserves), and others.

Looking ahead Darmin expect government to take appropriate steps to control commodity prices. "We accept the reality of inflation rises but we also believe the government took steps to control it essential commodities, especially rice.

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