JAKARTA (Yosefardi) – Central bank, Bank Indonesia said the benchmark BI Rate will not be raised further from current level of 7.5% along with the improvement of inflation, trade balance, and current account transaction.
The governor of BI will hold the meeting on Thursday (Jan 9) to make a decision on BI Rate policy.
Inflation reached 0.55% in December 2013, or average 0.67% in the past 5 years, a sign of recovery.
BI recorded a surplus on trade balance in past 2 months while current account transaction also potentially turns into a surplus.
BI Rate increased 175% basis points during 2013, from 5.75% to 7.5% at end of last year.