Indonesia: BI likely to remain on hold for the rest of 2021 – UOB

Bank Indonesia (BI) is seen keeping the key interest rate unchanged at 3.50% during the current year, in opinion of Economist at UOB Group Lee Sue Ann.

Key Quotes

“BI cut its benchmark rate by 25 bps to an all-time low of 3.50% at its February meeting as it sought to support the COVID-19 hit economy.”

“We think that this cut is likely to mark the end of the rate cut cycle by the BI.”

“We keep our BI rate forecast to remain steady at 3.50% for the rest of the year 2021.”

“That said, BI will remain accommodative and also ensuring ample liquidity to remain as long as it is necessary to support the process and progress of Indonesia’s economic recovery.”