Analyst: BI Rate to Remain Unchanged
8 October 2013 15:02 WIB
TEMPO.CO, Jakarta - Various expectations regarding the BI rate emerged nearing the announcement by Bank of Indonesia (BI) board of governors today. Market predicted deflation and trade balance surplus in September will not boost BI rate.
Indonesia Bond Pricing Agency (IBPA) analyst, Fahrul Aufa, predicted that BI will keep maintaining its BI rate in the current level to anticipate world economic turmoil.
"BI is confident to maintain BI rate at its current level," he said on Tuesday, October 8, 2013.
However, Fakhrul said, any statements regarding BI rate will influence exchange value growth and state bonds. In the last few weeks, deflation momentum has strengthened shot-term bonds price. "The most realistic thing to do in the current condition is to maintain BI rate in its current level," he said.
Similar view was expressed by PT Panin Sekuritas analyst, Kalvin Lie. According to him, BI will do the right thing if it decides to maintain its BI rate in the middle of positive economic data release. "The increase of BI rate will only be contra productive when fundamental economic condition hasn't shown improvement."
MEGEL JEKSON