- Analytics
- News and Tools
- Market News
- Indonesia: BI delivers another 50 bps rate hike – UOB
Indonesia: BI delivers another 50 bps rate hike – UOB
UOB Group’s Economist Enrico Tanuwidjaja reviews the latest interest rate decision by the Bank Indonesia (BI).
Key Takeaways
“Bank Indonesia (BI) delivered a back-to-back 50bps rate hike in Oct MPC meeting, in line with market expectation, to 4.75%.”
“BI said that the decision is a front-loaded, pre-emptive, and forward-looking step to anticipate and mitigate the risk of rising inflation and anchor inflation expectations to remain within the 2-4% range in 1H23.”
“Going forward, we revised and brought forward our BI rate forecast to 5.25% (previously 5.00%) by the end of 2022 and revised higher the terminal rate to 5.75% (before 5.50%) that is likely to occur in 1Q23. This will give a reasonably comfortable yet historically tighter spread of circa 100bps with the expected terminal rate of the Fed funds rate of 4.75% by 1Q23.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
