"Increase in inflation has prompted BI (last month) to raise its key rate by 25 basis points but this month BI is expected to maintain the benchmark rate at the 6.75 level," Roosniaty said here on Thursday.
The present 6.75 percent level was set last month.
She said that a drastic increase in the reference rate would be disadvantageous to Indonesia`s economy which was expected to grow to more than six percent.
"The country`s economic growth will slow down if BI raise its key rate again," she said.
According to Roosniaty, BI will be carefully in responding to the market, because the global economic turmoil now still remains uncertain.
"After all, BI Governor Darmin Nasution once said that BI will be very careful in raising its benchmark rate," the economic observer said.
She said that the government had set an economic growth target at 6.3 percent in 2011, which increased from 5.9 percent last year.
"Therefore, if BI raises its rate again, the national economy would face difficulties to grow well," she said.(*)
Editor: Aditia Maruli Radja
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