Indonesia kept interest rates unchanged

By IBTimes Staff Reporter | January 06 2010 6:12 AM

The Central Bank of Indonesia decided to keep interest rates unchanged for the fifth straight month to remain at 6.5% meeting analyst's forecasts. The bank sees inflation levels isnot enough in the current stage to start raising borrowing costs, especially that inflation rate settled near a decade low in December.

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However, the government is planning to spend more than $150 billion over the next five years in order to improve the infrastructure and build ports ad power plants that will help to accelerate economic growth, worth mentioning that the Indonesian economy expanded an annual4.2% in the third quarter.