JAKARTA (Antara): Bank Indonesia (the central bank/BI) decided Tuesday to maintain its key rate at 8.25 percent for the second month in a row on the prospects for the country achieving the inflation rate targets of 6, plus or minus 1, percent and 5, plus or minus 1, percent for 2007 and 2008 respectively.

The decision to maintain the key rate known as BI rate was designed to minimalize the impact of a possible upheaval on the economy although it continued to expand until July, Budi Mulia, director of the central bank's strategic planning and publicrelations, said following a meeting of the bank's board of governors here.

With the key rate remaining at 8.25 percent, the room for the banking sector to cut lending rates in support of the real sector's growth would remain available, he said.

The central bank noted that banking loans grew by 4.4 percent to Rp 38.5 trillion in July from a month earlier, he said.

"The figure is the highest in the past six months," he said. (***)