VIVAnews - Citigroup expected Bank Indonesia (BI) will cut the benchmark interest rate (BI Rate) by 25 basis points to 6.5 percent following the moderate inflation rate.
An economist of Citigroup of Asia-Pacific, Johanna Chua, stated in the press release on Tuesday, August 4. According to Chua, exports have slowly recovered, domestic demands rose, inflation rate is on the secure level and the rupiah exchange rate is improving.
"The rupiah has improved by 2.9 percent compared to July due to capital inflow," said Chua.
In July 2009, the Central Statistics Agency announced that the inflation rate reached 0.45 percent. The inflation rate in the 2009 calendar year (January-July) reached 0.66 percent while the year-on-year inflation (July 2009 against July 2008) reached 2.71 percent.
The core component in July 2009 was subject to inflation by 0.31 percent; 2.20 percent during the 2009 calendar year (January-July); 4.91 percent on the year-on-year core component inflation rate (July 2009 against July 2008).
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Translated by: Bonardo Maulana Wahono
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