Bank Indonesia (BI) is expected to maintain the benchmark interest rate or BI-7 Day Reverse Repo Rate (BI7DRR) at 3.5%.

Bank Mandiri economist Faisal Rachman said the Fed's stance of maintaining low-interest rates and buying bonds in 2021 provides room for BI to continue accommodative monetary and macroprudential policies.

Domestic factors, such as inflation rate and the current account deficit (CAD), are predicted to increase but remain under control, supported by accommodative policies.

"We also estimate that BI will maintain the benchmark interest rate at the level of 3.5% until the end of the year," he said in a statement on Thursday (17/6).

Even though the benchmark interest rate remains the same, BI may continue its quantitative easing and macroprudential policies to accelerate economic recovery.

Furthermore, a low-interest rate policy is still needed to help the domestic economy recover amid controlled inflation