{
    "success": true,
    "data": {
        "id": 1809560,
        "msgid": "perbanas-doubts-bi-rate-will-rise-today-heres-why-1781765499",
        "date": "2026-06-18 13:25:17",
        "title": "Perbanas Doubts BI Rate Will Rise Today, Here's Why",
        "author": "",
        "source": "CNBC",
        "tags": "",
        "topic": "Economy",
        "summary": "The Indonesian Banks Association (Perbanas) expressed scepticism that Bank Indonesia (BI) will raise its benchmark interest rate at today's meeting, citing the central bank's recent aggressive hikes. Perbanas officials noted that the cumulative increases, including a 50 bps hike in May and a 25 bps rise last week to 5.50%, may limit room for further tightening, while also highlighting concerns over the narrow spread with the US Fed Funds Rate.",
        "content": "<p>Jakarta, CNBC Indonesia - The Indonesian Banks Association (Perbanas)\nbelieves Bank Indonesia\u2019s (BI) benchmark interest rate, the BI Rate, may\nnot be raised at the Board of Governors Meeting (RDG) today, Thursday\n(18\/6\/2026).<\/p>\n<p>Perbanas Chairman Hery Gunardi said this is because BI has already\nraised the benchmark rate several times recently. As is known, BI\nincreased the rate by 50 bps at the May RDG, and raised it by another 25\nbps at last week\u2019s meeting, bringing it to the current 5.50%.<\/p>\n<p>\u201cIt seems not, it\u2019s already been raised. It\u2019s jumped several times.\nIt won\u2019t be able to withstand it later. My feeling is, no,\u201d said Hery\nwhen met at the Four Seasons Hotel on Thursday (18\/6\/2026).<\/p>\n<p>Similarly, Perbanas Head of Research &amp; Economic and Banking\nStudies, Aviliani, assessed that while the BI Rate still has room to\nrise, it may not be increased today. This is because BI just raised the\nbenchmark rate last week.<\/p>\n<p>\u201cYes, I see that interest rates will definitely rise, but whether BI\nwants to raise it, I\u2019m not sure yet\u2026 Because it was just raised by 25\nbps yesterday, would they raise it again? Even though it actually hasn\u2019t\nhad an effect, the cost of funds is already quite high,\u201d Aviliani\nexplained.<\/p>\n<p>She then highlighted that the spread between the US central bank\u2019s\nbenchmark rate, the Fed Funds Rate (FFR), and the BI Rate is still too\nnarrow. The Federal Reserve\u2019s interest rate is currently in the range of\n3.50% to 3.75%.<\/p>\n<p>According to Aviliani, the issue with raising the BI Rate relates to\nstability versus growth. She noted that a BI Rate increase is followed\nby a significant rise in the yield on Bank Indonesia Rupiah Securities\n(SRBI).<\/p>\n<p>\u201cBetween raising and not raising, we are still looking at the effect,\nbecause we see that government funds are going to be withdrawn. If\ngovernment funds are withdrawn, even without BI raising rates, interest\nrates will automatically rise,\u201d Aviliani explained.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/perbanas-doubts-bi-rate-will-rise-today-heres-why-1781765499",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}