DBS Group Research Senior Economist, Radhika Rao, said that Bank Indonesia continues to be accommodative in its monetary policy while maintaining financial market stability.

"In terms of the Rupiah currency, Indonesia's fundamentals are better than in 2013 during the taper tantrum or the soaring yield on US bonds," in a statement on Friday (25/6).

He explained that although there are some impacts of developing country assets caused by a decline (taper), it does not necessarily become significant after the volatility.

"Therefore, COVID-19 vaccination plays an important role in economic recovery efforts and investment mapping in the future. Indonesia's public finances have experienced a significant increase over the last two decades," he explained.

According to Radhika, interest rate cuts will not happen, but BI will prioritize financial market stability.

Meanwhile, DBS Bank Chief Economist Taimur Baig revealed that there had been a business cycle since 2020, which DBS Bank divides into five phases in achieving post-pandemic economic recovery. The details are the pandemic, vaccinations, and the central bank will consider inflation, the job market, and the formulation of new policies.

ASEAN countries, including Indonesia, are still at the stage of pandemics and vaccination, while developed countries are already at the scene of inflation and the jobs market. The number of positive cases of Covid-19 in Indonesia, which had decreased some time ago, has jumped again.

In the world's two largest economies today, 53% of the United States (US) population has been vaccinated, while China is still estimated at around 40%.

"Inflation in the US is currently still below the Fed's average target, so the Fed is expected to continue its accommodative fiscal policy. But on the other hand, the US also sees a direction of recovery in consumption levels which will affect the increase in the inflation rate in the future which will certainly affect the Fed's interest rate policy, "said Taimur.