The result of Bank Indonesia’s Board of Governors Meeting (RDG) once again decided to keep the BI Seven Days Reverse Repo Rate (BI 7-DRRR) at 3.50% or the same level since February 2021. NHKSI Research sees the wait and see approach of BI is due to the Fed’s plan to increase the Fed Fund Rate (FFR) four times in 2022, starting at the upcoming March 2022. Furthermore, BI also maintained the deposit facility and lending facility, at 2.75% and 4.25% respectively. We also see the continuation of domestic economic recovery, amid the sentiment of the Covid-19 Omicron variant case upsurge.
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