ADA PELUANG BI RATE TURUN MULAI SEPTEMBER

PUBLISHED JULY 15, 2013

Indonesia c.bank sees lower rates in future, 

inflation easing

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Bank Indonesia surprised the market last Thursday by raising the benchmark policy rate by 50 basis points to 6.50 per cent, double the expected increase - PHOTO: BLOOMBERG

[JAKARTA] Indonesia's central bank sees room to cut its benchmark policy rate in the future if inflation starts to ease in September as expected, an official at Bank Indonesia told Reuters on Monday.

"Inflation will be (back to) normal after September this year. Therefore, the BI rate going forward can be lower," Deputy Governor Perry Warjiyo said.

The central bank sees inflation picking up to as high as 7.5 per cent in July before easing to 7 per cent in August.

Bank Indonesia surprised the market last Thursday by raising the benchmark policy rate by 50 basis points to 6.50 per cent, double the expected increase, as it stepped up its battle to stem capital outflows and combat inflation after fuel price hikes.