Bank Indonesia (BI) should keep the monetary policy unchanged at its meeting later this week, while it could raise rates in the second half of the year, commented Lee Sue Ann, Economist at UOB Group.

Key Quotes

“Since inflation is still below the 2%-4% of BI’s target range, the central bank will have the policy space to remain accommodative to support the economic recovery.”

“We keep our BI rate forecast to stay at current level of 3.50% in the near term and to start hiking its benchmark interest rates in the latter half of 2022.”