"We would monitor in the future is inflation because its expected increase has become more real. We will always coordinate with the authorities especially fiscal authorities," he said to newsmen at the central bank building here on Friday.
He said Indonesia`s economy is facing challenges from home and abroad.
He said current account transactions continue to suffer a deficit coupled by trade and fiscal account deficits.
"The primary balance is also negative to make investors to be worried," he said.
He said in the period of Juni, Juli and August historically inflation would rise and the rise would be bigger later if the decision to raise the price of subsidized oils is taken.
In connection with that BI therefore had taken a preemptive measure by raising the benchmark and deposit facility (fasbi) rates by respectively 25 basis points.
"What we are addressing is inflation. There is also a special need to maintain the financial system stability due to uncertainty in the economic situation," he said. (*)
Editor: Heru Purwanto
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