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Wednesday, Indonesia's central bank left its key interest rate unchanged for a third month in a row, saying that inflation is not posing any risks currently.
The Bank Indonesia retained its reference rate at 6.5%, where it has been staying since August. The decision was in line with economists' expectations.
The central bank said in a statement that the Indonesian economy continued to improve in October. Exports are expected to recover in line with global economic recovery. The apex bank forecasts the domestic economy to expand 4.3% this year and 5.5% next year. It added that annual GDP growth in the fourth quarter would be better than the third quarter.
The central bank forecasts Indonesia's inflation rate to remain at its lowest level between 3.5% and 5.5% in 2009 and it may accelerate to be between 4% and 6% next year. In October inflation unexpectedly slowed to a nine-year low of 2.57%. The central bank said inflation may continue to decline in the medium term.
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