Bank Indonesia May Raise Rates to 6.25% by Year-End, Says BMI
BMI expects Bank Indonesia to raise its benchmark interest rate by another 50 basis points to 6.25% before the end of the year as pressure on the Indonesian rupiah continues.
According to the report, the rupiah is likely to remain weak despite recent policy interventions, while rising oil prices could increase import costs and place additional pressure on the country's fiscal position. BMI also noted that ongoing governance and policy uncertainty may continue to weigh on investor confidence.
However, the firm believes Indonesia's pro-growth policy stance will likely prevent more aggressive rate hikes beyond the expected increase.
#BankIndonesia #BitcoinDominanceRisesTo59% $CL
BMI expects Bank Indonesia to raise its benchmark interest rate by another 50 basis points to 6.25% before the end of the year as pressure on the Indonesian rupiah continues.
According to the report, the rupiah is likely to remain weak despite recent policy interventions, while rising oil prices could increase import costs and place additional pressure on the country's fiscal position. BMI also noted that ongoing governance and policy uncertainty may continue to weigh on investor confidence.
However, the firm believes Indonesia's pro-growth policy stance will likely prevent more aggressive rate hikes beyond the expected increase.
#BankIndonesia #BitcoinDominanceRisesTo59% $CL