Padang, W Sumatra - Bank Indonesia (the central bank/BI) should keep its key rate at 8 percent this month to contain the stubbornly high inflation rate, an economist said.

By keeping the key rate unchanged, the real sector, particularly small and medium businesses, would continue to grow, Prof Dr Elfindri of Andalas University in Padang, said here Saturday.

BI has kept its key rate, locally known as BI Rate, unchanged for the fourth month in a row since last December.

"The real sector may produce more because it is not much   dependent on fuel oil which currently tends to contribute to the inflation rate," he said.

BI could keep the inflation rate in check by among others narrowing the gap between the high salaries of managers and those of staff members.

The country's inflation rate was chiefly caused by the current global crude price spiral, he said, adding the problem mitigated  by among others asking the government to curb  public demand for fuel oil in the short run.

To control the rising demand for fuel, the government could introduce vouchers to motorists to buy fuel in limited quantities, he said.

"The government must focus its attention on controlling the public's fuel consumption. The public's demand for fuel is on the rise as the number of two-wheeled and four-wheeled vehicles increases sharply," he said.

Less than 50 percent of the public's fuel consumption was  contributing to the country's economic growth, he said.

Ideally, BI should set the key rate at 5 percent in the future to give the people wider access to banking loans, he said.