Raising Benchmark Rate Will Be Solution
The surge in the rupiah exchange rate against the US dollar may result in the increase of inflation. It is necessary, therefore, that BI increase the benchmark interest rate to maintain the stability of the domestic economic climate.
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A trader watches the ticker tape of the Jakarta Composite Index (JKSE) on Thursday (26/4/2018) at the Indonesia Stock Exchange in Jakarta. The JKSE closed down 2.81% on Thursday, or down 170.65 points to 5,909.19.
JAKARTA, KOMPAS — The surge in the rupiah exchange rate against the United States dollar may result in the increase of inflation. It is necessary, therefore, that Bank Indonesia (BI) increase the benchmark interest rate to maintain the stability of the domestic economic climate.
Last week, the rise in the US dollar exchange rate against the majority of the world\'s currencies continued. The strengthening of the US dollar also affected the Jakarta Composite Index (JCI), which dropped to the 6,000-level.