Indonesia: BI expected to hold rates – UOB

Lee Sue Ann, Economist at UOB Group, sees the Bank Indonesia (BI) keeping the policy rate unchanged in March.

Key Quotes

“We reiterate our view for BI to continue keeping its benchmark rate unchanged in 1H22.”

“Nevertheless, we are of the view that the rate hike cycle will begin soon, with our forecast that BI will start to hike its benchmark interest rates in the latter half of 2022.”

“Our forecast is for two 25 bps hikes in 3Q22 to 4.00%, followed by another ywo 25 bps hikes in 4Q22 to 4.50%.”