The Central Bank of Indonesia decided to keep interest rates unchanged to remain at 6.50% the lowest since May 2005. The bank didn't find it the proper time to raise borrowing costs especially that inflation eased to reach 2.57% in October the lowest in nine years.

However, the central bank said that inflation rate is expected to remain at its lowest level between 3.5% and 5.5% in 2009 and it may accelerate to be between 4.0% and 6.0%, worth mentioning that the bank said in its statement that inflation may continue to decline on the medium term.

The central bank expects the economy to expand 5.5% in 2010 compared with earlier estimates of an expansion by 4.3% as consumer demand is anticipated to recover supporting economic recovery.