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Indonesia raises interest rate
Source: Xinhua |
February 4, 2011, Friday
|
Online Edition
Online Edition
BANK Indonesia, the central bank, today raised its interest rate by 25 basis points to 6. 75 percent, Kompas.com online news quoted an official as saying today.
"The Bank Indonesia's interest rate was raised by 25 basis points," said Deputy Governor of Bank Indonesia Halim Alamsyah.
The increase was in line with many bankers and economists prediction that the BI rate will be raised sooner due to high inflation in January of 7.02 percent, higher than the whole year 2010 of 6.96 percent.
According to Alamsyah, Bank Indonesia has regarded higher global food and crude oil price triggering the high inflation.
The rate had been staying at 6.5 percent in the last 18 months or since August 2009.
"The Bank Indonesia's interest rate was raised by 25 basis points," said Deputy Governor of Bank Indonesia Halim Alamsyah.
The increase was in line with many bankers and economists prediction that the BI rate will be raised sooner due to high inflation in January of 7.02 percent, higher than the whole year 2010 of 6.96 percent.
According to Alamsyah, Bank Indonesia has regarded higher global food and crude oil price triggering the high inflation.
The rate had been staying at 6.5 percent in the last 18 months or since August 2009.
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