Bank Indonesia continued to maintain BI 7-Days Reverse Repo Rate (BI 7-DRRR) benchmark rate at 3.50%. Economic pressure may happen again in 3Q21, thus NHKSI Research also saw the need for low interest rate to support domestic recovery. Economic activities in July until September may potentially slow down, despite growing more than 7% YoY in the previous quarter. We saw the data indicator Manufacturing Purchasing Managers’ Index (PMI) for July 2021 contracted, falling to 40.1. Although it was in the expansion phase, reaching 53.5 the previous month. The decline in Manufacturing PMI also marked the first contraction of the manufacturing sector in the past nine months. Other indicators such as Consumer Confidence Index (CCI) for July fell to the pessimistic phase at 80.2 points, compared to 107.4 in the previous month. Pessimistic CCI indicated concerns about the domestic economy in the next six months.
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