BI rate 6.5 percent not yet calmed depositors
The Jakarta Post
The Jakarta Post
Gadjah Mada University economist, Toni A.Prasetiantono, said Bank Indonesia (BI)'s benchmark interest rate of 6.5 percent was not yet enough to calm down depositors because the expectation of inflation was still higher than the BI rate.
'BI rates which had been increased by 50 basis points to 6.5 percent was not yet enough to calm down bank depositors because the inflation expectation is still above 7 percent,' said Toni in Jakarta on Tuesday, as quoted by Antara news agency.
According to Toni, the central bank needs to increase its benchmark interest rate again during the BI board of governors' meeting next month.
'Apart from that, what BI can now do is to carry out a careful intervention,' said Toni.
He said the government should begin to be aware on the need of a new equilibrium for rupiah which was above Rp 10,000 per US dollar.
'This new equilibrium is actually tolerable because when the subprime mortgage crisis occurred in 2008-2009, the rupiah currency rate traded at Rp 12,000 per US dollar,' said Toni.
He said the new equilibrium discourse should be immediately introduced to the public to muffle negative sentiments against the rupiah. (ebf)
You might also like :
- Streep ‘terrified’ to work with Hanks, Spielberg for the first time
- Year-end events to attend in Bali
- Minister, Anies join thousands in rally to support Palestine
- Heavy air pollution shuts schools in Iran
- Suspicious deaths of billionaire Canada couple investigated
- BPS to start collecting e-commerce data in January
- Does playing action video games change your brain?
- Assange told not to interfere in Catalonia: Ecuador president
- Frenchman breaks new record for sailing solo around the world
- All work and no play leads to burnout, says new study