January 06, 2010 |
|Wednesday, Indonesia's central bank kept its key interest rate unchanged at a record low of 6.50% for a fifth consecutive month in January. The decision was in line with economists' expectations.|
In a statement, the central bank said the rate decision is consistent with its inflation target and will support the economy.
Indonesia's annual inflation accelerated in December to 2.78% from 2.41% in November. In 2009, inflation was 2.78%. The central bank's 2010 inflation target is 5% plus or minus 1%. The central bank's Board of Governors is of the view that inflationary pressures will not arise in the first half of 2010.
Moreover, the rate-setting board believes that improvement in domestic economic conditions would continue.