Channel News Asia are reporting on statements made by Bank Indonesia (BI) Deputy Governor Dody Budi Waluyo, who said at a recent book launch, that Indonesia’s headline inflation in November could come in at 5.5-percent, or lower than the previous month when headline inflation was 5.71-percent, citing Bank Indonesia’s latest survey.
“(5.5-percent) is still high and still needs policies to manage that, but actually we are in a relatively better position than other countries,” Dody said.
BI’s inflation target is a range of 2 to 4-percent. In September, inflation reached nearly 6-percent or the highest in seven years.
Referring to BI’s key interest rate, Dody said while the current rate of 5.25-percent was “quite high”, BI was taking into account the effect of tightening monetary policy on economic recovery.
At BI’s policy meeting on Thursday, BI raised its key interest rate by 50-basis points for a third consecutive month and pledged to strengthen its response to “high” inflation expectations.
Source: Channel News Asia, Reuters