Indonesia: BI kept the steady hand in March – UOB

Economist at UOB Group Enrico Tanuwidjaja and Yari Mayaseti assess the latest interest rate decision by the BI.

Key Takeaways

“Bank Indonesia (BI) kept its benchmark rate (7-Day Reverse Repo) unchanged at 3.50% at its March 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 this year.”