Jakarta –
Finance Minister Sri Mulyani Indrawati estimates that mold interest rate or the Bank Indonesia 7 Days Reverse Repo Rate (BI7DRRR) will increase by 100 basis points (bps) until the end of 2022.
“Our BI rate is still at 3.5%, it is likely to increase by around 100 bps until the end of the year,” Sri Mulyani said in a virtual press conference on the State Budget KiTA, Wednesday (27/7/2022).
The projection refers to the predictions of all analysts. Until the end of 2022, the benchmark interest rate is estimated to be at the level of 3.75% to 4.75%.
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Molded interest rate now at the level of 3.5% which BI has been holding for the last 18 months. This is aimed at encouraging Indonesia’s economic recovery after the COVID-19 pandemic.
The need for an increase in the benchmark interest rate is to balance the difference with the interest rates of the United States (US) which have increased aggressively this year. This is important to provide attractiveness to investors.
The yield on the US 10-year treasury, which is currently at 2.99%, is also expected to double to 200 bps. Likewise, the 10-year SUN interest rate is estimated to increase by 0.300 bps.
“We are relatively able to maintain the stability of our state securities so that it is not easily swayed by this outflow,” said Sri Mulyani.
(aid/dna)
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