"Yes, we`ve principally letting it off as (the appreciating trend) can be made a tool (with which to vent off inflationary pressures)," said BI deputy governor Hartadi A Sarwono, here, on Thursday.
Sarwono said that BI will not put a certain ceiling to what point the rupiah may appreciate against the greenback. "There won?t be no certain level limit."
The rupiah has appreciated to the level of 8,845 to the US dollar this week from the previous stabilized level of 9,000 level since early February after BI rate was increased to 6.75 percent from the long-kept 6.5 percent.
The direct reason for the appreciating trend of the rupiah has been the rush of capital inflow following BI?s new policy on its basic rate, Sarwono said, adding that inflationary pressure in the days ahead will be more due to inflation spurred by crude oil and foodstuff imports.
On the planned limitation on sales of subsidized fuels, Sarwono said that should the program be implemented then it will contribute some 0.7 percent to inflation nationally.
The government, however, announced on Thursday that the limitation on sales of subsidized fuels to public in Jakarta and its surrounding areas has been postponed from its April 1, 2011 schedule.
(Uu.KR-VFT/HAJM/A014)
Editor: Priyambodo RH
Copyright © ANTARA 2011
