BI Rate Held at 6.5%, GWM Promoted So 8%

Bank Indonesia to maintain its benchmark interest rate in the BI Rate at 3 September 2010 at a rate of 6.5 percent. Policy of holding interest rates this is the 14th time in BIsince August last year.

"This decision was taken after a thorough evaluation of recent developments," Nasutionsaid the central bank governor in Jakarta, Friday, September 3, 2010.

BI recognizes the recent inflationary pressures are quite high that a special attention.On that basis, taking into account the potential for future inflation pressures, the central bank raised required reserve ratio of 5 percent to 8 percent for the rupiah DPK.

"This policy was carried out considering the substantial excess liquidity," he said. On the fulfillment of additional primary reserve requirement of 3 percent will be givenremuneration of 2.5 percent pa.

According to Nasution, the combination of these policies is considered sufficient to maintain monetary and financial stability amid the still high capital flows.