BI Maintains Benchmark Rate at 6.5 Percent

Bank Indonesia (BI)’s board of governors on Wednesday decided to maintain its benchmark interest rate at 6.5 percent, a spokesperson said. The decision was taken after an overall evaluation of economic developments that showed improvements as had been predicted, Bank Indonesia’s director of strategic planning and public relations, Dyah NK Makhijani, said.

She said the level of the BI Rate was considered still consistent with the achievement of the inflation target of 5 plus or minus one percent in 2010 and conducive for efforts to strengthen the economic recovery process, financial stability and banks’ intermediary role. In the BI governors’ view the global economic recovery had continued with a stronger intensity to bring a positive impact on the domestic economy, particularly the country’s exports, she said.

The economic recovery process in the US and Japan continued to improve and this also had a positive impact on emerging markets in Asia such as China that has recorded a quite high economic growth rate within the last three years. Optimism towards global economic recovery has become stronger despite remaining risks linked to a crisis in a number of European countries such as Greece and Portugal.

Several indicators showed the domestic economy had grown according to predictions, particularly driven by exports and investment, she said. According to her, private consumption had also remained high, while exports had recorded positive growth and the potential to grow further in line with the world’s stronger economic recovery.


DIPOSTKAN OLEH SHOWROOM CAHAYA INTAN MOTOR


cahayaintan1@yahoo.com