The central bank of Indonesia has forecast that the country's consumer price index will be 4 percent or lower this year, governor of the bank Agus Martowardojo said on Thursday.

The projection was made as the country's annual inflation reached 3.84 percent at the third week of July, based on a survey conducted by the lender, Martowardojo said.

The central bank kept its seven day-reverse repo rate on hold at 4.75 percent last week.

Indonesia has enjoyed a rapid capital inflows in recent months.

The lender said there is still room for a loosening policy and it will apply it when the global factors give their supports.

The recent economic data in United States, including inflation figure, has weakened hawkish prospect of the U.S. Federal Reserve monetary stance in coming months.