Inflation to gradually moderate: BI

The Jakarta Post ,  Jakarta   |  Tue, 10/07/2008 3:59 PM  |  Business

Central Bank governor Boediono told reporters at the State Palace on Tuesday that inflation would gradually stabilize by next year.

"We are expecting it to gradually moderate," Boediono said accompanied by senior deputy governor Miranda Goeltom after a meeting with the President.

The central bank raised the country's benchmark interest rate by 25 basis points to 9.5 percent earlier this morning after the Central Statistics Agency reported Monday that year-on-year inflation in September soared to 12.4 percent.

The move is also expected to boost the rupiah, which declined by 3.23 percent to Rp 9,585 to the U.S. dollar during trading Monday after the nation's stock index plunged 10 percent amid a global
liquidity squeeze.

Boediono said the meeting was a follow-up to Monday's Cabinet meeting and updated the President on a consolidated measure in mitigating impact from the global credit woes.

During the meeting, the President stressed his concerns over maintaining the rupiah at a reasonable level, he said. (and)

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