Indonesia: BI could raise rates to 4.5% by year end – UOB

Yari Mayaseti, Junior Economist at UOB Group, assesses the latest BI monetary policy meeting.

Key Takeaways

“Bank Indonesia (BI) kept its benchmark rate (7-Day Reverse Repo) unchanged at 3.50% at its April MPC meeting. Consequently, BI maintained the Deposit Facility rate at 2.75% as well as the Lending Facility rate at 4.25%.”

“We keep our view for BI to start hiking in mid-2022 to reach 4.5% by the end of 2022.”