Indonesian Central Bank Sees Modest Inflation This Year

Inflation to be at a modest pace this year as rupiah remains relatively stable against the U.S. dollar.

Jakarta, 18 Jumaal Awwal 1437/26 February 2016 (MINA) – Indonesian central bank expects inflation to be at a modest pace this year as rupiah remains relatively stable against the U.S. dollar, allowing easing policy to continues.

Inflation is estimated to stay at four percent this year, a slightly higher than last year’s 3.3 percent last year, Juda Agung, executive director of research and monetary policy of Bank Indonesia said on Thursday.

“There’s room (to cut interest rate). We see the outlook of our inflation remains good,” he told reporters in Jakarta.

Last week, the central bank slashed its basic rate by a quarter percentage point to 7.0 percent for the second time this year, in a bid to help propping up the subdued economy, Mi’raj Islamic News Agency (MINA) reported, quoting Xinhua.

Also Read: BANK INDONESIA FORECASTS INFLATION RATE FOR 2015 TO REACH 3.5 PERCENT

The policy was taken after the U.S. Federal reserve hiked its interest rate.

The executive director projected rupiah to be stable and competitive against the greenback this year.

On Thursday rupiah was traded at 13,416 against one U.S. dollar, according to the central bank website.

Indonesia GDP growth picked up to 5.04 percent at the final quarter after accelerating by 4.74 percent at the previous quarter, the national statistic bureau has said. (T/R07/R01)

Mi’raj Islamic News Agency (MINA)