Jakarta (Antaranews Bali) - Bank Indonesia again decided to maintain its reference rate at 4.25 percent on Thursday in view of economic stability and acceleration in growth recovery in the midst of increasing inflation pressure caused by food price.
The central bank also maintained its deposit facility and lending facility rates at 3.5 percent and 5.0 percent respectively.
"They will be effective as of January 19 in line with macro-economic condition and financial system stability," BI`s assistant governor/head of monetary and economic policy, Dody Budi Waluyo said at a press conference.
Early in January this year the bank saw inflation pressure which was caused by food price. Dody said the bank and the government would strive to maintain supply and production of food commodities to reduce the pressure.
"Besides that oil price has indeed continued to rise but while the pressure is still tolerable we still see inflation to be still within the target of 3.5 percent plus and minus one percent this year," he said.
With regard to domestic economic growth, Bank Indonesia has seen that economy would recover faster due to increasing domestic demand.
The cause of increasing domestic demand is hike of investment, household consumption and fiscal stimulus.
Exports have also risen because commodity prices are still high. In all economic growth in 2018 is predicted to increase at 5.1 to 5.5 percent, he said.
In terms of global economy the central bank saw that improving economic condition in advanced countries would boost domestic economy.
In addition to that, the referecnce rate of the US Federal Reserve is predictef to also increase after up by 25 basis point to 1.25 to 1.15 percent in December. (WDY)
COPYRIGHT © ANTARA News Bali 2018
The central bank also maintained its deposit facility and lending facility rates at 3.5 percent and 5.0 percent respectively.
"They will be effective as of January 19 in line with macro-economic condition and financial system stability," BI`s assistant governor/head of monetary and economic policy, Dody Budi Waluyo said at a press conference.
Early in January this year the bank saw inflation pressure which was caused by food price. Dody said the bank and the government would strive to maintain supply and production of food commodities to reduce the pressure.
"Besides that oil price has indeed continued to rise but while the pressure is still tolerable we still see inflation to be still within the target of 3.5 percent plus and minus one percent this year," he said.
With regard to domestic economic growth, Bank Indonesia has seen that economy would recover faster due to increasing domestic demand.
The cause of increasing domestic demand is hike of investment, household consumption and fiscal stimulus.
Exports have also risen because commodity prices are still high. In all economic growth in 2018 is predicted to increase at 5.1 to 5.5 percent, he said.
In terms of global economy the central bank saw that improving economic condition in advanced countries would boost domestic economy.
In addition to that, the referecnce rate of the US Federal Reserve is predictef to also increase after up by 25 basis point to 1.25 to 1.15 percent in December. (WDY)
Editor : I Gusti Bagus Widyantara
COPYRIGHT © ANTARA News Bali 2018