BI: interim U.S.-Iran peace has not eased global risk

Bank Indonesia judges that the interim peace agreement between the United States and Iran is not enough to remove global economic uncertainty, even as war tensions begin to ease. BI Governor Perry Warjiyo said the war disruptions since late February are still weighing on supply chains and the outlook for world growth. BI estimates the global economy will grow only about 3% this year, with inflation at 4.4%. At the same time, Danantara CIO Pandu Sjahrir said easing conflict could help stabilize world oil prices, which in turn would give Indonesia more room to manage its fiscal position and economy. On Thursday, BI also raised its benchmark interest rate by 25 basis points to 5.75%. Pandu said Danantara will follow the direction of the authorities to maintain national economic resilience.