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The Fed interest rate are 4,75%

The Federal Reserve Bank (The Fed) in United State of America (USA) has decreasing the interest rate from 5,25 percent become to 4,75 percent. Actually, this condition should be decreasing our domestic interest rate too, and so on it will be increasing our economic growth.

With our condition currently, the government just worried about the inflation cause of demand for consumer goods refer to “lebaran” holiday, of course it will be increasing the price of consumer goods too. Over demand refer to “lebaran” holiday was predicted by goverment and it will be increasing the inflation rate for entirely.

Government of Central Bank, Burhanudin Abdullah said that if our inflation expectation around 6.5 percent and plus minus 1 percent as per targeted, so the central bank have an opportunity to decreasing the interest rate.

In normal condition with no inflation and as per planning the central bank will be decreasing the interest rate on November 2007. While, our finance minister, Sri Mulyani still optimistic and believes that the government can control the situation currently. 

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