Indonesia's central bank on Thursday decided to retain its policy interest rate for the fifth consecutive time. The action was in line with economists' expectations.
The Board of Governors of Bank Indonesia retained the policy rate at 5.75 percent, citing weaker inflation expectations and a stable domestic economy despite an increase in global economic uncertainty.
The bank said it expects inflation to remain within its target range of 4.5%±1% in 2012 and 2013. The economy is expected to post lower growth of 6.3 percent in the third quarter, and is expected to arrive at 6.1- 6.5 percent and 6.3-6.7% in 2012 and 2013 respectively, the bank said.
Indonesia's inflation came in at 4.53 percent in the second quarter, and remained in check as reflected in the core inflation which remained low at 4.15 percent, the bank said.
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