Middle Market Perpetrators Awaiting Cut Of Reference Interest Rates

Photo: Doc. Antara

JAKARTA - Head of Macroeconomic and Financial Market Research of PT Bank Mandiri Tbk Dian Ayu Yustina said that business actors and market players are currently looking forward to cutting the benchmark interest rate by central banks at the global level.

"Currently, the period of optimism is starting, both global and domestic. Because, from global, we are currently waiting for the time when the central bank around the world will cut-rate," said Dian in a seminar entitled "New Optimism for Economic Development of the Prabowo-Gibran Government Era" in Jakarta, quoted from Antara, Thursday, August 29.

He said that all central banks in the world have opened space to cut the benchmark interest rate, including Bank Indonesia (BI).

"Likewise with BI, from Pak Perry Warjiyo's last statement (Governor of BI) from RDG, the space for lowering interest rates was in the fourth quarter of 2024," said Dian.

Meanwhile, from the United States (US), he continued, Jerome Powell's speech to the Federal Reserve (The Fed) chairman at Jackson Hole last week showed signs of a monetary easing at the September 2024 meeting.

For information, the Fed will hold a Federal Open Market Committee (FOMC) meeting on 17-18 September 2024.

Next month, there will be FOMC The Fed. And the market expectations almost everyone said they would go down. Part of it goes down 15 basis points, part of it goes down 50 bps, even bigger, but no one expects to stay," said Dian.

Thus, the Fed's interest rate is estimated to reach around 4.25 to 4.5 percent by the end of the year, bringing the total to 100 basis points down.