NHKSI Research sees Bank Indonesia’s decision to maintain the BI Seven Days Reverse Repo Rate (BI 7-DRRR) benchmark interest rate at 3.50% as an anticipation of
the Fed’s tapering off plan. The US Central Bank is holding Federal Open Market Committee (FOMC) Meeting on September 21-22, 2021. Furthermore, BI also
maintains the deposit facility and lending facility interest rates, each at 2.75% and 4.25%. BI’s commitment to keep the interest rates low, as the domestic economic
recovery with more relaxed public activity restrictions. Some domestic indicators are improving, such as the Retail Sales Index which is projected to grow 4.3% MoM, and Manufacturing PMI which increased to 43.7 in August.
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