JAKARTA: Several economists project BI rate to be maintained at 6.75% during todays board of governor meeting as the inflation expectation is still below 6% over the next few months.Senior economist at ISEI, Mirza Adityaswara projects BI rate to be maintained at the current level with a controllable inflation expectation as there is no rising fuel price in the near future.It seems that BI rate will be maintained as the inflation is still controllable or below 6% and there is no rise over fuel price. After Ied Mubaraq, we will again evaluate the inflation level, he told Bisnis yesterday.According to him, a declining BI rate is not an option although inflation is still below target as there is an inflationary pressure resulting from demand. This is proven by the core inflation and rising import of consumer goods.Supposes such projection is correct, for the sixth time, BI rate will be maintained at 6.75% this year, the rate only rose once by 25 basis points from 6.5% in January.Jakarta Composite Index (JCI) weakened by 0.2% yesterday to 3,995.59 with IDR61.5 billion foreign net sale of the total transaction at IDR4.2 trillion.Profit takingAnalyst at PT Panin Sekuritas Tbk Purwoko Sartono projects todays stock market to be consolidated after yesterdays correction due to profit taking after JCI touched psychological level of 4,000 last week."JCI faced a profit taking after touching 4,000 last week. Although it weakened, investors still undertook net sale in the market, he said yesterday.Investors tend to use financial report in June 2011 as a reference in transacting rather than the fixed BI rate.Regarding inflation, Central Bureau of Statistic (BPS) perceives the inflation for calendar year (January-June 2011) to reach 1.06% while year-on-year (June 2010-June 2011) declines to 5.54% from 5.98%.In June 2010, inflation was 0.97% and June 2011s inflation reached 0.55%, making the annual inflation continues to decline. The monthly core inflation was 0.33% while annual core inflation reached 4.63%.Head of Fixed Income Division at PT Anugerah Securindo Indah Ramdhan Ario Maruto estimates corporate bonds market to move sluggish considering series of initial public offering that influence bond secondary market.Yet, in general, over the last two weeks, the trend shows a rising bond price, making the yield decline, indicating a high demand.He anticipates a correction over bond market in the future since the offered yield is relatively low compared to other country.For sovereign bonds, yield in the last five years is still low. Thus, we must be very careful in the future. Yet, for the time being, the market is still goods, the interest of foreign investors is still high, he said.According to him, if BI rate rises, expectation on yield will follow as well, making bond price decreases. Yet, it is unlikely BI rate will rise as it is more likely to be maintained. (t02/msw)

---

Artikel Terkait

Berita Lainnya

Berita Terbaru