UOB Group’s Economist Lee Sue Ann suggests the Bank Indonesia (BI) could hike further its policy rate at the September 22 meeting.

Key Quotes

“Consistent with our forecast that inflation expectation will likely continue to build up higher, we maintain our view that BI will continue to hike its benchmark interest rates higher, with our forecast for three more 25bps hikes in months to follow for the 7D Reverse Repo to settle at 4.50% by year-end.”