Video: Inflation Could Surge Due to War Effects, Interest Rates May Rise

The Middle East war, which has repercussions on the closure of the Strait of Hormuz, is said by Farash Farich, Chief Investment Officer of BNI Asset Management, to have impacted a surge in energy prices, namely oil, gas, and coal. The increase in energy prices is feared to push up prices and will raise the inflation rate, which will impact the economy and the state budget, up to the declining prospects of interest rate cuts by the US central bank, The Fed, and Bank Indonesia, even with the potential for interest rates to rise. This condition is certainly a concern for market players, so investors tend to be cautious in investing in the global financial markets, including Indonesia. How do market players view the impact of the war on inflation, interest rates, and Indonesia’s financial markets? For more details, watch the dialogue between Andi Shalini and Chief Investment Officer of BNI Asset Management, Farash Farich, in Power Lunch, CNBC Indonesia (Tuesday, 31/03/2026).