BI benchmark rate up slightly to 13.62%<\/p>\n
JAKARTA (JP): The benchmark interest rate on the one-month
\nBank Indonesia SBI promissory note increased by two basis points
\nto 13.62 percent during the Wednesday weekly auction, the central
\nbank said in a statement.<\/p>\n
The interest rate increase occurred amid concerns over
\nstronger inflationary pressure and a weakening rupiah.<\/p>\n
Plans by the government to raise fuel prices by an average of
\n12 percent next month has caused concern the government's 5
\npercent to 7 percent inflation target for this year may be
\nexceeded.<\/p>\n
The Central Bureau of Statistics said earlier inflation this
\nyear could reach 9 percent, citing in particular higher fuel
\nprices.<\/p>\n
The central bank also has increased the benchmark interest
\nrate to help stabilize the ailing rupiah.<\/p>\n
Concern over continuing domestic political uncertainty and
\nthreats of an economic embargo by the international community
\nfollowing the killing of three United Nations humanitarian
\nworkers in Attambua, West Timor, have increased the pressure on
\nthe rupiah.<\/p>\n
The rupiah ended at Rp 8,835 to the U.S. dollar in late
\ntrading on Wednesday, compared to its Tuesday close of Rp 8,840.<\/p>\n
The higher interest rate on the SBI promissory note will
\nincrease the cost of the country's bank recapitalization program,
\nwhich the government has issued bonds to help finance. The bonds'
\ninterest rate is partially linked to the SBI rate. The state
\nbudget covers the interest of the bonds.<\/p>\n
Elsewhere, Bank Indonesia said its foreign exchange reserves
\nincreased slightly to US$27.99 billion as of the week ending on
\nSeptember 22, from $27.29 billion the previous week.<\/p>\n
BI said the increase was mainly the result of oil and gas
\nrevenue and export payments.<\/p>\n
The central bank also said base money decreased Rp 1.18
\ntrillion to Rp 93.19 trillion during the same period.<\/p>\n
BI said the slide was due to a decline in bank notes in
\ncirculation.<\/p>\n
The central bank said net domestic assets during the same
\nperiod moved to Rp 23.54 trillion from negative Rp 20.51
\ntrillion.(rei)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bi-benchmark-rate-up-slightly-to-1362-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}