Observer: Only the BI Rate Increase Fuel Triggers

Observers banking from Standard Chartered Bank, Fauzi Ichsan, said that if true wouldincrease the price of fuel oil (BBM) in the future it will trigger a rise in BI Rate at least 50 basis points. This course will also influence the increase in Interest Rate CreditAssociation (SBDK).

"BI rate to 7.25 percent but next year," he said when met at the residence of Nasution, September 1, 2011.

Not only that, global economic conditions are uncertain also put pressure on marketliquidity. Due to global economic instability that will not take long to make a smallinfluence on the increase in the BI Rate.

"Interest, while low global interest rates, U.S. dollar, Euro and Yen, even if interest ratesrise dollars, it will not be great. So I say 50 bp in the first quarter of next year, assumingfuel price increases," he said.

The increase in fuel prices, he added, became the sole determining factor or increase in the BI Rate SBDK factor because if the prism of international rice prices and the exchange rate stable. "And it will put pressure on inflation," he said.

But rising fuel prices, according to Fauzi very unlikely. Because the drop in oil pricesand the commitment of The Feds are low enough to maintain interest rates at 0.25 percent up to two years to be the cause.

"For a while it's possible (increase in the BI Rate) is still small," he said.