BCA Braces for Impact of Middle East Crisis, Global Tensions

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TEMPO.CO, Jakarta - PT Bank Central Asia Tbk (IDX: BCA), or BCA, is closely monitoring the ripple effects of escalating tensions between Iran, Israel, and the United States on Indonesia's financial sector. Hera F. Haryn, BCA's executive VP for corporate communication and social responsibility, said the bank consistently tracks global macroeconomic trends, including the potential fallout from ongoing geopolitical conflicts.

"We trust that the government and relevant financial authorities will take swift and appropriate measures to maintain national economic stability amid global volatility," Hera said in Jakarta on Tuesday, June 24. "At the same time, BCA is keeping a close eye on market movements, including potential shifts toward safe-haven assets. In these dynamic conditions, we're committed to innovating and delivering solutions and products that meet our customers' evolving needs."

The heightened tensions, sparked by U.S. airstrikes on three Iranian nuclear facilities on June 22, 2025, have triggered a wave of retaliatory attacks between Iran and Israel. This escalation has raised concerns about broader impacts on global markets.

Hera noted that global interest rate policies are also a key focus for BCA. She suggested that the U.S. Federal Reserve might maintain or even raise interest rates to curb inflation, though a rate cut remains possible if the U.S. economy slows or slips into a recession.

For context, the Federal Reserve held its benchmark interest rate steady at 4.25% to 4.50% this month but signaled two potential rate cuts by December 2025.

On the domestic front, BCA welcomed Bank Indonesia's decision to keep its benchmark interest rate at 5.50%. "We view this as a strategic move by BI to navigate the uncertainties of the global economic landscape," Hera said.

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