BI Sees 'Higher for Longer' Era Ahead: What Does It Mean for Markets?
BI warns that a "higher for longer" US interest rate environment could keep global financial markets under pressure amid persistent uncertainty.
Bank Indonesia (BI) Acting Governor Destry Damayanti has stated that the global financial markets are entering a "higher for longer" era due to persistent economic uncertainty and high US interest rates. The prolonged high-rate environment is expected to put significant pressure on the global financial sector and markets, with rising oil prices and the US government's need to finance its budget deficit increasing the supply of US government bonds.
This global situation is also expected to strengthen the US dollar index against major currencies, impacting Indonesia's economy. The global economic outlook remains weak, with projected growth of around 3.0 percent in 2026 and elevated inflationary pressures at around 4.5 percent, prompting tighter monetary policies globally.
Brief written by urgent.news from Tempo.co English's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
