BI Run Neutral Monetary Policy

Jakarta (ANTARA News) - Bank Indonesia will continue to implement a neutral monetary policy while maintaining the stability of the national economy amid the global economic crisis that has not stabilized its completion.


"We will continue to implement monetary policy is neutral, not tightening rather than easing the economy," said Executive Director of Economic Research and Monetary Policy Bank Indonesia Warjiyo Perry on Friday.
Neutral monetary policy that the underlying BI to keep the BI rate level of 5.75 percent rate on the BI board of governors meeting Thursday, as assessed in accordance with the rate of inflation is still low and controlled.
"Determination of the BI rate was based on estimates of inflation and economic growth in the next two years and 5.75 percent BI rate is a reflection of our estimates," he said.
Perry explained, the level of 5.75 per cent was also in accordance with the purpose of maintaining economic growth remained high at above six per cent, so that the central bank is not yet feel the need to lower interest rates again.
"We've lowered the BI rate in February from 6.00 percent to 5.75 percent, while other countries such as South Korea's recently lowered their interest rates to spur economic growth," he said.
According to Perry, BI policy rate reduction last February had a positive impact on national economic growth is expected to grow 6.3 percent this year, despite the world economy continued to slow.
Governor of Bank Indonesia Nasution said the move cut the BI rate at the beginning of this year started to feel the benefits of being able to anticipate the global economic slowdown.
"Now many are just beginning to be done and we do not need to do any more because we've done it," Nasution said.
According to Nasution, these policies would do more for the central bank was responding to the developments in the domestic economy as do the foreign currency term deposit auctions to absorb excess liquidity in the banking currency. (Tp)
source: http://id.berita.yahoo.com
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