Anticipation Inflation, Monetary Operations BI Polar

Bank Indonesia (BI) will give priority to monetary operations in the face of inflation expectations began to rise. However, the BI will continue to prepare the further steps, such as reviewing the statutory minimum amount.

"We really see any indication that inflation expectations are starting to increase. You can see whether the indicators of retail sales survey from the merchant, and consumer expectations survey also implied inflation expectation of financial market participants is no indication that rising inflation expectations," said Chief of Department Economic Research and Monetary Policy Bank Indonesia, Perry Warjiyo, in discussion with reporters at the Office of Bank Indonesia, Tuesday (17/04/2012).

In anticipation of rising inflation expectations, the central bank did reinforcement in monetary operations. Perry said the operation aimed at controlling liquidity have been conducted from last month.

With the strengthening of monetary operations, the central bank tries to keep interest rates of monetary operations and the market moves up a little money, especially for the tenor-tenor of more than one day.

In early March, he said, interest rates for monetary operations tenor deposit facility for one night (overnight) of about 3.75 percent, and for the tenor to 9 months was about 3.8 percent.

"By strengthening monetary operations that we did last month until now why then our monetary operation rates for the deposit facility to which one day we still maintain 3.75 percent, and for the 9-month tenor was about 4 percent," he explained.

Even though there is little to interest rate increases 9-month tenor, Perry said, the percentage of 4 percent is still low. That way, there is no reason for banks to raise deposit rates or lending rates.

In addition to strengthening monetary operations, he said, the central bank will continue to prepare the further steps. These steps will depend on government policy, for example related to fuel oil (BBM) and its impact on inflation.

"The move to another control liquidity directly in addition to strengthening monetary operations continue to perform the steps of course we are prepared directly controlling liquidity through a review of the minimum reserve requirement. It is being prepared. Implemented as to what and how we look at how government policy decisions related to fuel What kind of impact on inflation, "said Perry