BI holds rate to support economy, banks

The central bank maintained its benchmark interest rate at 6.5 percent on Wednesday, saying the rate would be sufficient to support the economy and banking intermediation.

Inflation in October eased to 2.57 percent on a year-on-year basis, giving Bank Indonesia (BI) more time before raising the benchmark rate in line with higher inflation next year.

Banks responded well to the monetary policy easing, BI said. Deposits and lending rates are adjusting gradually.