(Insider Stories) - Indonesia Central Bank would once more increase its benchmark interest rate (BI rate)  before end of 2013, Deposit Insurance Agency executive director  Mirza Adityaswara said.

The BI rate was expected to rise to 6.25 percent with an inflation assumption of 8.1 percent due to the recent rise of subsidized-fuel prices.

However, Adityaswara said, it was also possible that BI rate would remain unchanged, but that would only happen if the market could accept the current rate of 6 percent.

Board of governors meeting decided to increase its benchmark rate and deposit and lending facility rates 25 bps to 6% and  4.25% respectively.

The central bank said its policy was to respond expected increase in inflation as well as to maintain both macroeconomic and financial-system stability amid uncertainties in global financial markets.