Indonesia: BI seen on hold next week – UOB

Economist at UOB Group Lee Sue Ann suggests the Bank Indonesia will keep the policy rate unchanged at its meeting next week.

Key Quotes

24-hour view: “BI is of the view that inflation will stay within its target range of 2%-4% in 2022, in line with stability of the IDR, as well as policy response taken by BI and the government.”

“Our revised 2022 inflation forecast (average basis) is currently at 3.3%. We continue to maintain our view for BI to keep its benchmark rate unchanged in 1H22. Nevertheless, we are of the view that BI will start to hike its benchmark interest rates in the latter half of 2022.”