Jakarta (ANTARA News) - Bank Indonesia (the central bank/BI) has decided to maintain its key interest rate at 6.75 percent which it said is still enough to stabilize macroeconomic conditions and financial system and support economic expansion.
The decision to maintain the key rate, locally known as BI Rate, was made at a meeting of Bank Indonesia`s board of governors on Tuesday, BI spokesman Difi A Johansyah said.
He said Bank Indonesia believed that the global financial market upheavals triggered by the downgrading of US rating would have a limited impact on the domestic market. The impact could be dealt with by always monitoring market developments and coordinating with the government.
The central bank believed that the decision would be able to maintain macroeconomic stability and bring the inflation rate to the target of 4-6 percent for 2011 and 3-5-5.5 percent for 2012.
(Uu.S012/HAJM/H-YH)
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