VIVAnews - Economic observer Mirza Adityaswara believes that the central bank can still lower the BI rate by 25 basis points. The BI rate was down to 7.50 percent in April.
BI rate decrease is possible due to the deflation in April 2009, recorded at 0.31 percent. Meanwhile, the Rupiah tends to improve at Rp 10,485 against US dollar. The global interest rate is likely decreasing by virtue of the recession.
"Therefore, the BI rate can still be cut by 25 basis points," Adityaswara told VIVAnews on Tuesday, May 5.
He said that the annual inflation is expected to edge down. He predicted that this year's inflation would be at five percent. The BI rate still can be lowered to below seven percent until late 2009.
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Translated by: Ariyantri E. Tarman
