Indonesian Central Bank forecasts rupiah to be depreciated in 2012

Indonesian Central Bank predicted rupiah is going to be slightly depreciated to the level of 8,900 to 9,000 per U.S. dollar next year from the state budget projection of 8,800 per U.S. dollar amid ongoing global economic uncertainties, local press reported Tuesday. \"May be there is going to be a little bit of weakening. But it is going to be not far from the annual average of 8,900 to 9,000 against one U.S. dollar,\" Deputy Governor Hartadi A. Sarnowo was quoted by Bisnis Indones as saying. He said the depreciation was due to the risks of the global economic slowdown and the pressure on the bond market as investors preferred to exit. The deputy governor said the Central Bank would intervene in currency and bond market for stabilization. Soaring global oil prices and the government stimulus plan for 2012 may increase inflation pressure and depreciate rupiah against the dollar next year. The government\'s loosing monetary policy plan may also contribute to the weakening. The Central Bank cut interest rate by 75 basis points in September and October to 6 percent.