BI Rate Rises 100 Bps in a Month, Here Are MI's Investment Picks

The President Director of Recapital Asset Management, Nurdiaz Alvin Pattisahusiwa, stated that the increase in Bank Indonesia’s benchmark interest rate, which reached 100 basis points within a month, is encouraging capital flows to shift towards interest-rate-sensitive instruments, one of which is the money market. For investment managers, rapidly changing global geopolitical uncertainty also influences asset direction and strategy. Currently, managers are required to anticipate the various impacts of war and the interest rate cycle. When interest rates are high, the money market becomes one of the investment instruments that can be utilised by investment managers to obtain higher yields with lower risk. For fixed-income mutual funds, when interest rates rise, bond prices will experience a decline.