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VIEW: Goldman Sachs: Factoring In More BI Tightening In 2022

INDONESIA

Late on Monday Goldman Sachs noted that “with growth rising faster than we had anticipated, and inflation likely to breach the upper end of the inflation target band later this year, we're building in a faster pace of tightening into our BI policy rate forecast path. We now expect BI to hike 50bp in Q3 and 75bp in Q4 for a total of 125bp of hikes this year (vs. 75bp previously), with another 100bp of hikes in H1 2023. This takes the terminal policy rate to 5.75% by mid-2023 (compared to our earlier forecast of 5.75% by Q1 2024).”

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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