Inflation Rises, BI Rate to Be Revised

Bank Indonesia still keeps the benchmark interest rate BI Rate at 6.5 percent. However, should the inflation rate be be above five percent, the central bank weigh a chance to increase the BI Rate.

"The current core inflation is at four percent. But it's still okay," said Bank Indonesia Deputy Governor Hartadi A Sarwono in Jakarta, Dec 22.

According to him, if the core inflation rate goes higher, the BI Rate would be revised.

Bank Indonesia did not expect the November's inflation rate to hit 0.6 percent, which is way beyond its prediction. "We've only made a figure of 0.5 percent of increase," said BI Governor Darmin Nasution.

As a result, the year-on-year inflation reached 6.33 percent while the cumulative level was at 5.98 percent.

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