Bond Investment Strategy: Safe Options When BI Raises Interest Rates

The domestic bond market remains under pressure. Heightened global geopolitical uncertainty and an unfavourable domestic economic environment have increased investment risk perceptions. Bank Indonesia (BI) decided to raise the benchmark interest rate by 50 basis points (bps) to 5.25% to maintain monetary stability and curb pressure on the rupiah exchange rate amid foreign capital outflows from domestic financial markets. However, the move has yet to succeed, with the rupiah hitting a record low of Rp 17,743 against the US dollar yesterday.