BI 7-DRRR Remains at 3.50% Level. Bank Indonesia again held the benchmark BI Seven Days Reverse Repo Rate (BI 7-DRRR) interest rate in November at 3.50%. This decision is in line with low and controlled inflation. For the record, the inflation rate as of October 2021 is 0.93% YtD or 1.66% YoY. This figure is still lower than the BI projection, inflation in 2021 is 2% – 4%. Market participants are still keeping an eye on the potential increase in US and Chinese interest rates, along with rising inflation in the two countries, having the opportunity to make BI raise its benchmark interest rate in the second half of 2022.
Download full report HERE.