BI's Surprise Rate Hike Meets Prabowo’s Pro Growth Stance

Interest Rates

The Bank Indonesia (BI) Board of Governors meeting has raised the BI 7-Day Reverse Repo Rate (BI-7DRR) by 25 basis points to 6.25 percent, the Deposit Facility rate to 5.5 percent, and the Lending Facility rate to seven percent. BI Governor Perry Warjiyo stated that the decision is a response to increased global uncertainty stemming from changes in the direction of the Fed Fund Rate and escalating political tensions in the Middle East.

Initially, the Fed was expected to lower the Federal Fund rate in the second half of 2024. However, many predict that the Fed will hold its interest rates lower for longer amid continuing inflationary pressures. "This situation requires a strong policy response to mitigate the negative impact of the spread of global uncertainty on economies in developing countries, including Indonesia," Perry said on Wednesday, Apr. 24.

Register now and get free access.

If you want to get free access to our Daily Insights and Weekly Digest, please click "Sign up" button below. If you already have an account, please login.

What do subscribers receive?

As a subscriber, you'll receive daily insights, weekly business digests, and quarterly industrial reports.

What kind of pieces will i get?

In-depth reports on assumption and impact analysis, as well as update and trends mapping, written by our credible and experienced analysts.

And, there is something else…

Register now and get free access, click here to register. Feel free to contact us with any additional questions you have.