Jakarta, CNBC Indonesia – Bank Indonesia (BI) has decided to increase the BI 7 Days Reverse Repo benchmark rate by 50 basis points (bps) to 4.25%, with the deposit rate at 3.5% and the loan rate at 5% .
The market consensus compiled by CNBC Indonesia predicts BI will raise the benchmark interest rate this month. Of the 14 institutions involved in forming the consensus, all agreed that the MH Thamrin camp would raise the benchmark interest rate.
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A total of 12 institutions / institutions estimate that the central bank will increase BI7DRR by 25 basis points (bps) to 4.00% while two institutions / institutions expect BI7DRR to increase by 50bps to 4.25%.
BI Governor Perry Warjiyo at a press conference revealed a number of reasons why the central bank raised its benchmark interest rate again to 50bps in this month’s RDG. This is part of the early loading phase of BI.
“The decision to raise interest rates is an early, forward-looking and forward-looking step,” Perry said Thursday (9/22/2022).
Perry said an interest rate hike of 50 basis points is a way for the central bank to lower inflation expectations and ensure core inflation returns to the BI target range of 3 plus minus 1% in 2023.
“In addition to strengthening the rupee’s exchange rate stabilization policy so that it is in line with its fundamental value due to the uncertainty of the global financial market amid growing demand for the domestic economy which remains strong,” he said. Perry said.
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