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Observer: BI Rate 6.5 Percent Match Expectations

Jakarta (ANTARA) - BNI economist Ryan Kirayanto said determining the BI rate at 6.5 percent by Bank Indonesia in accordance with expectations based on the macro-economy during the first quarter of 2010.

"It was appropriate projections and the expectations of analysts and economists with reference to the macroeconomic conditions during the first quarter of this and future prospects are also particularly inflation expectations are well maintained," he said in Jakarta on Tuesday.

He added that Bank Indonesia from the beginning has given the signal to maintain the BI rate.

"And just going to adjust start the third quarter or early second semester along with the increase in inflation expectations because of factors consumerist society and the spike in oil prices," he said.

According to him, setting the BI rate at 6.5 percent would provide certainty for banking and business circles in the middle of the trend rise in interest rates in various countries.

Meanwhile, Bank Indonesia Board of Governors Meeting on Tuesday, decided BI's interest rate fixed rate maintained at 6.5 percent. BI rate at 6.5 percent level since August 2009 has survived until now.

This is because economic conditions are still unstable, especially on until March inflation still under control. Based on the announcement of the Central Statistics Agency (BPS), in March occurred deflation of 0.14 percent (MTM), whereas in March 2010 YoY inflation 3.43 percent.