Economist Predict Bank Indonesia Will Maintain BI Rate

JAKARTA - Bank Permata Chief Economist Josua Pardede said that Bank Indonesia (BI) is expected to maintain the BI rate at 6 percent at the October 2024 Board of Governors Meeting.

"We estimate that the BI rate will remain at 6 percent at the October 2024 RDG," he explained in his statement, Wednesday, October 16.

According to Josua, this prediction, taking into account the strengthening trend of the US dollar against major currencies, has implications for the strengthening of the US dollar against all Asian currencies throughout October.

Josua added that this was triggered by the escalation of Middle Eastern geopolitics and the release of US economic data, especially US labor data, which indicated tightening US labor market conditions.

"So that market expectations for the Fed's interest rate cut have changed," he said.

However, Josua said that there is still room for a decrease considering the inflation conditions that remain under control, especially core inflation which remains anchored in BI's inflation target.