While the inflation rate must be kept in check, growth must also be ensured."Jakarta (ANTARA News) - Bank Indonesia (BI) is expected to maintain its benchmark rate at 7.5 percent, as discussed during a meeting of its board of governors in July 2015, according to a banker.
"Actually, it depends on how we look at it. If we take inflation into account, the inflation rate will reach 7 percent year-on-year due to Idul Fitri festivities. So I predict that it (the benchmark rate) will remain unchanged," President Director of PT Bank Bukopin Tbk Glen Glenardi said here on Tuesday.
He expressed hope that BI will slash the benchmark rate, which is locally known as BI rate, by at least 25 basis points to encourage the real sector.
"Of course, there will be advantages and disadvantages. While the inflation rate must be kept in check, growth must also be ensured. It is only a matter of time before we will need to decide which needs to be a higher priority," Glenardi pointed out.
At the meeting of its board of governors on June 18, the central bank had decided to keep the benchmark rate unchanged at 7.5 percent for the fourth month in a row since February when it was slashed by 25 basis points.
BI also decided to maintain the deposit facility rate at 5.5 percent and the lending facility rate at 8 percent. The move was relevant to efforts to maintain the inflation rate within a range of 4 percent, plus/minus 1 percent, in 2015 and 2016 and the direct the current account deficit between 2.5 and 3 percent of the gross domestic product in the medium term.
(Reported by Citro Atmoko/Uu.INE/KR-BSR/B003)
Editor: Priyambodo RH
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