JAKARTA. Citi Research economist Helmi Arman has predicted that Bank Indonesia (BI) will increase its benchmark interest rate and overnight deposit facility rate (Fasbi rate) in the coming months as it is expected that the inflation rate will remain high. “We are maintaining our prediction on the inflation rate which will stand at 8.2 percent until the end of this year while the BI rate and Fasbi rate are predicted to be 6.5 percent and 4.75 percent respectively,” said Helmi in Jakarta on Tuesday. The economist said that he hoped BI could respond to inflation by raising the policy rates (Fasbi and BI rates) by two consecutive rises of 25 basis points (bps) in July and August.
BI may increase its interest rate again: Analyst
JAKARTA. Citi Research economist Helmi Arman has predicted that Bank Indonesia (BI) will increase its benchmark interest rate and overnight deposit facility rate (Fasbi rate) in the coming months as it is expected that the inflation rate will remain high. “We are maintaining our prediction on the inflation rate which will stand at 8.2 percent until the end of this year while the BI rate and Fasbi rate are predicted to be 6.5 percent and 4.75 percent respectively,” said Helmi in Jakarta on Tuesday. The economist said that he hoped BI could respond to inflation by raising the policy rates (Fasbi and BI rates) by two consecutive rises of 25 basis points (bps) in July and August.