Mirza: Do not be Distracted, Time BI Rate Up

Bank Indonesia advised not too late to raise interest rates in the BI Rate to anticipatethe high rate of inflation.

"BI Rate still could be raised 50 basis points to 7 percent by the end of this year," said Chief Economist of Bank Mandiri Mirza Adityaswara in Jakarta, Monday, August 23, 2010.

He stressed a number of other countries have raised interest rates, but apparently stillwaiting for BI. According to him, do not let the market had anticipated the high interest rates, while it is too late to do BI.

"We experience a capital inflow into Indonesia, it will even continue to enter until 2011.Generally in good condition we just have to be careful," he said.

According to him, not to be lulled by the central bank's current condition. Moreover, in the belief that the debt rating that will achieve investment grade (investment grade).

"BI is not too late to raise interest rates because it will cause the correction of foreigninvestors," he said.

In fact, he reminded the BI should respond to inflation since last month. It's not justbecause of high food but also the high demand so that needs to respond in monetary terms by the BI.