BI interest rate

BI interest rate
up to 7.41%

The yield on one-month Bank Indonesia promissory notes increased
to 7.41 percent on Wednesday during a regular bi-weekly auction
from 7.4 percent previously.

The central bank said it sold Rp 35.1 trillion (about US$3.86
billion) of 32-day bills, accepting 99.9 percent of the bids. The
bills will mature on Nov. 22.

Bank Indonesia has been reluctant to raise its benchmark
interest rates in an attempt to help push economic growth higher.
The economy grew by 4.3 percent in the second quarter, after
growing 5 percent in the first three months of the year. The
government expects growth this year to accelerate to 4.8 percent
from 4.1 percent last year.

A number of analysts have previously suggested the central
bank to raise the benchmark interest rate to help defend the
rupiah and curb inflationary pressure. -- JP