Bank Indonesia
April 11, 2013
The BI interest rate was held at 5.75%, its level since cuts of 25 basis points in October 2011, 50 basis points in the following month and 25 basis points in February 2012. That easing more than offset a single post-Great Recession 25-bp hike administered in February 2011. During the global downturn, 300 bps of ease was implemented with an eventual trough of 6.5% from August 2009 until the sole hike in February 2011.
A statement released by the BI Board today
- Blamed a spike of CPI inflation from 4.6% in January to 5.9% as of March on food price pressures whose impact will be temporary.
- Reaffirmed that the present policy stance will deliver in-target medium-term inflation. The target is a range of 3.5% to 5.5%.
- Revised projected economic growth downward to 6.2-6.6% this year and 6.6-7.0% in 2014.
- Said downward pressure on the rupiah is moderating.
- Promised to “strengthen monetary operations through increasing the absorption of excess liquidity into long-term tenor.”
- And predicted a smaller current account deficit this quarter.
The Bank’s Board meets every month.
Copyright 2013, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
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