Darmin: You'll Think Naik, Yes?

JAKARTA, KOMPAS.com - Acting Governor of Bank Indonesia, Nasution said that BI remains optimistic on the inflation target of five percent plus of minus one percent for the year 2010. Therefore, the Board of Governors decided BI BI Rate remained at 6.5 percent level.

"You think it'll go up, huh?" Darmin prank in a press statement on Thamrin Building, Monday (05/07/2010).

Board of Governors assess the BI Rate at 6.5 percent rate is still consistent to push inflation higher at the end of the second quarter thus possible to achieve the inflation target has been determined.

Darmin admitted, in June there have been increasing inflation which is dominated by the rising prices of spices, like chili and onions because of the uncertainty of the season. However, BI remains optimistic in two to three months the price will soon fall.

Therefore, the BI does not see inflationary pressures in the months of June to be permanent. According to him, was always the same tendency in the last 7-8 years. Nasution did not doubt the board of governors should also note the possibility of increasing inflationary pressures from the impact of TDL, time prior to and during Idul Fitri, and rising food prices due to the uncertainty of the season.

"So we are optimistic on the inflation rate plus five percent minus one," he said.

BI also predicted economic growth in 2010 tends to penetrate the upper limit of the range of 5.5 to 6 percent projection. The increase in exports and investment are expected to continue to occur and further strengthen the increase in consumption in supporting higher economic growth in 2010 and 2011.

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