Jakarta (Antara Bali) - Bank Indonesia is expected to raise its benchmark interest rate (BI Rate) from 7.25 percent to 7.5 percent in its next monthly meeting to strengthen rupiah, an economist said.
Other non fundamental attempts to shore up sagging rupiah is by creating positive sentiment in the market, chief economist of state lender Bank Negara Indonesia (BNI) Ryan Kiryanto said.
A situation should be created to prevent panic and jittery in the market, Ryan said here on Wednesday.
In addition, rupiah could be strengthened by launching a new comprehensive and pro investor economic policy package, he said.
He predicted the rupiah would hover around the levels of 11,000-11,500 per US dollar on the average until the end of the year.
Bank Indonesia has raised its BI rate a number of times in the past several months in a bid to keep inflation under control, and to maintain rupiah stability .
In its latest decision on Sept 12, the central bank raised the BI rate from 7 percent to 7.25 percent. On Wednesday, in inter-bank transaction , rupiah lost 260 points to close at 11,460 per US dollar.
"Though weakening the movement has been stable because of intervention by Bank Indonesia," financial market analyst of Bank Mandiri Rully Arya Wisnubroto said.
Rully predicted in Thursday's trading rupiah will strengthen to the level of 10,900-11,400 per dollar with intervention by the central bank. (*/DWA)
