Indonesian central bank on Thursday put its benchmark interest rate on hold at 6.5 percent for a fourth straight month to spur economic growth, the bank said in a statement.

The decision is in line with expectation of seven analysts surveyed by Xinhua.

"Indonesia concludes that the strong fundamental economy, which is in line with the global economic recovery, and the strengthening of the business confidence, have been a strong basis for us to push the momentum of the economic growth in the future," the bank said.

Indonesia's annual inflation in November reaches 2.41 percent after gaining 2.57 percent in October, the Statistic Bureau said on Tuesday. The inflation may achieve 3.5 percent by year end, Deputy Governor of the bank Darmin Nasution has said recently.

Analysts predicted that inflation pressure may rise in the coming months due to the rise of global demands of export products, the government plan to raise oil price following the hike of global oil price and the plan to increase electricity tariff.

The analyst predicted that the rate hike may be conducted at the end of the second quarter next year.

"The bank may increase rate in June next year," analyst from CIMB Niaga bank Winang Budoyo said.

The government forecast inflation rate at 4 to 6 percent next year.

Indonesia gross domestic product is forecast to grow between 4.6-4.7 percent in the fourth quarter of this year, and 4.3 percent for the full year, Indonesian Finance Minister Sri Mulyani has said recently.

The country's Coordinating Minister for Economy Hatta Rajasa said on November 30 that the government was optimistic to achieve 5.5 to 6 percent economic growth next year.

The central bank stopped cutting rate in August after conducting 300 basis points reduction for a straight ninth months.

Analyst from Standard Chartered Bank Eric Sugandi said that the current rate of 6.5 percent was comfortable for the rupiah exchange rate value against US dollar. Rupiah is at 9,480 against the dollar on Thursday. Rupiah was predicted at 9,200 at year end, he said.

The Southeast Asia largest economy's exports in October rose by10.12 percent to US$11.88 billion from the same period last year, the bureau said on December 1.

The country has revised up its export target from minus 30 percent to minus 20 percent this year, and has predicted that the overseas sales to grow by 5 percent next year as the global demands on the country's export product grow, Trade Minister Mari Elka Pangestu has said.

(Xinhua News Agency December 3, 2009)