JAKARTA: The Hong Kong and Shanghai Banking Corporation estimates that Bank Indonesia benchmark interest rate will remain at 5.75% level.
Head of Global Markets HSBC Indonesia Ali Setiawan said economic growth in the first half 2012 was high enough to be a great support. "We expect Bank Indonesia (BI) will hold the BI Rate at the current level," he said on Tuesday (8/8/2012).
Ali said if BI keeps BI Rate at the current rate, the economic impacts would not be too large because of inflation and economic growth still can be maintained.
He explained the domestic consumption is a very good economic support, despite the economic slowdown has already begun in some areas of Asia. Indonesia also recorded a trade deficit of more than US$1 billion with China and around US$660 million with Japan.
Ali explained the future concern is the increasing number of goods that will not be absorbed by export market.
"The accumulated amount of finished goods may show a decline in demand. This trend is not only happening in the region, but in global market. While in Indonesia it is not too significant," he said. (T03/msw)
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