JAKARTA. Gadjah Mada University economist, Toni A. Prasetiantono, said Bank Indonesia (BI)’s benchmark interest rate of 6.5 percent was not yet enough to calm down depositors because the expectation of inflation was still higher than the BI rate. “BI rates which had been increased by 50 basis points to 6.5 percent was not yet enough to calm down bank depositors because the inflation expectation is still above 7 percent,” said Toni in Jakarta on Tuesday. According to Toni, the central bank needs to increase its benchmark interest rate again during the BI board of governors’ meeting next month.
BI rate 6.5 percent not yet calmed depositors
JAKARTA. Gadjah Mada University economist, Toni A. Prasetiantono, said Bank Indonesia (BI)’s benchmark interest rate of 6.5 percent was not yet enough to calm down depositors because the expectation of inflation was still higher than the BI rate. “BI rates which had been increased by 50 basis points to 6.5 percent was not yet enough to calm down bank depositors because the inflation expectation is still above 7 percent,” said Toni in Jakarta on Tuesday. According to Toni, the central bank needs to increase its benchmark interest rate again during the BI board of governors’ meeting next month.