BI raises rate to 9.50% on inflation concerns

Bank Indonesia (BI) has raised its benchmark rate for the sixth time this year, from to 9.25 to 9.5 percent, amid inflationary pressures and global economy concerns. The central bank governor Boediono told reporters Tuesday that the key rate was increased to suit high inflation and to anticipate the global financial crisis.

The country's annual price inflation spiked to its highest level in September, rising by 12.14 percent compared to a year earlier.

The Central Statistics Agency reported on Monday that monthly inflation reached 0.97 percent in September, up significantly from 0.51 percent in August. (dre)
Source : The Jakarta Post, Oktober 7 2008