Wednesday, December 19, 2007

[Antara] Indonesia 2007 inflation seen at 6.3-6.5 pct - BI


News:


Indonesian inflation is expected to be between 6.3-6.5 percent in 2007, senior Bank Indonesia (BI) deputy governor said, but warned that monetary authorities should be cautious about the economic outlook next year. Miranda Goeltom told a forum late on Tuesday that bank lending in Southeast Asia's largest economy could grow 25 percent this year, higher than a previous central bank estimate of around a 20 percent rise. "Our tracking shows that the year-to-date inflation until the second week of December is 6 percent. So our estimates for the full year would be between 6.3-6.5 percent," Goeltom was quoted by Reuters as saying. "Bank Indonesia must be cautious in looking at the 2008 economic outlook," she said, adding: "The outlook should be promising despite the slowdown in the global economy, but will need huge efforts to meet the government (economic) growth target of 6.8 percent" next year. Earlier this month Goeltom said 2007 inflation would be between 6.3-6.7 percent, while the government's assumption in 2007 budget is 6.3 percent. The central bank is sticking to its inflation forecast of 5-7 percent for 2008 despite warnings of possible higher oil prices, which could top $100 a barrel and squeeze the government's budget. Indonesia's inflation in November was at 6.71 percent, marginally lower than analysts forecast of 6.87 percent, as consumer demand eased after the Muslim's festive season.


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