The global economy is already showing signs of slowing in the major global markets of North America and Europe. As inflation in the United States (US) recently touched the highest level in 40 years at just above 9% (year to year), the Federal Open Market Committee (FOMC) announced on July 27, 2022, it was raising the federal funds rate by 75 basis points, bringing the target range to 2.25% to 2.5%.
As the Federal Reserve and other central banks around the world continue to raise rates in their fight against inflation and a rising dollar, there will be more and more pressure on Bank Indonesia to follow suit and further raise interest rates.
The objective of this investment trends update is to address the consequences for the Indonesian property market from the global economy slowdown.
Read more on Colliers Indonesia’s latest Market Insights: “Indonesia Investment Trends as Global Economy Slows”