MONETARY
Interest Rate Drops

BANK Indonesia (BI) has positively responded to the hopes of many circles for a low interest rate. On Wednesday last week, the central bank again lowered the reference interest rate (BI Rate) by 50 basis points from 9.25 percent to 8.75 percent. According to BI Governor Boediono, the weakening inflation pressure is one of the considerations. “The condition requires a monetary policy that supports economic growth,”