Thursday, March 4, 2010
Bank Indonesia Keeps Rate at 6.5 Percent
Source: TEMPO Interactive
FAMEGA SYAFIRA

TEMPO Interactive, Jakarta: Bank Indonesia maintained its key interest rate on Thursday (4/3) dodging the projection made by global analyst that south east asian central banks will be the first ones that ready to raise their rates.

In a release on Thursday, Head of the Strategic Planning and Public Communication Bureau Difi Johansyah wrote the Board of Governors meeting on Thursday (4/3) decided to keep rate at 6.5 percent, repeating the argument issued in the previous months for keeping the rate.

"BI rate is still consistent with the inflation target for 2010 of 5 percent plus minus one percent," the central bank wrote. "The Board of Governors assured that significant inflation pressure will not emerge until the end the first semester 2010."

The bank said inflation down in February to 3.88 percent from 4.33 percent in January. The pace of economic recovery was better than projected earlier this year with generated by rising public consumption and positive trade balance.

Mining, agriculture, and infrastructure projects dominated export and in turn pushed industry and trade growth above the projected level.