Condition Disallows Bank Indonesia To Readjust Rate

Jakarta (Antara Bali) - Bank Indonesia said external condition would not allow Bank Indonesia to make readjustment of its benchmark interest rate (BI rate).

Governor of the central bank Agus Martowardojo said before making a decision, the  bank leaders in their monthly meeting, held a deep analysis based on valid information and data.

"Now wee see that external condition is full of uncertainties. Trade volume is low, commodity price down, risk from the  U.S. raising its interest rate, Chinese devaluation that could be followed by other countries  and low oil prices.Under such condition it is impossible for us to change stance," Agus said at an economic meeting here on Thursday.

He said Bank Indonesia would maintain its present benchmark interest rate (BI rate).

"If we want an economic growth  its must one with quality . We don't want high economic growth that would end  in a plunging after a few years," he added.

He said  the central bank would continue to be on guard and give importance to positive sentiment in the country.

"It is important for us to remain calm, avoid issuing conflicting signals, inconsistency  and speculations. We stick to our commitment we would be better," Agus said.

Bank Indonesia, therefore, is expected to maintain its benchmark interest rate at 7.5 percent. (WDY)