KONTAN.CO.ID - JAKARTA. Indonesia's central bank is forecasting second quarter economic growth at 5.15 percent and its governor said that pace, combined with low inflation, showed that "the national economy is running under its capacity".
Bank Indonesia (BI) Governor Perry Warjiyo also told reporters on Friday he does not think the rupiah's weakness has affected the inflation rate, despite an acceleration in core prices in July, attributing the rise to higher school fees.
"BI's stance remains hawkish, we continue to take pre-emptive steps. We will review the steps we have taken, whether they are enough or we need to take further step," Warjiyo said.
Between mid-May and the end of June, BI raised interest rates by 100 basis points to defend the fragile rupiah.
Editor: Barratut Taqiyyah Rafie