Bank Indonesia expected to lower the BI rate by 25bps
Bank Indonesia's (BI's) next monetary policy meeting is scheduled for 19 May. The central bank is expected to cut the BI rate 25bps to 7.25%, but keep the overnight deposit facility (FASBI) rate unchanged at 5.50%. Based…
Bank Indonesia's (BI's) next monetary policy meeting is scheduled for 19 May. The central bank is expected to cut the BI rate 25bps to 7.25%, but keep the overnight deposit facility (FASBI) rate unchanged at 5.50%.
Based on Indonesia's narrowing current account (C/A) deficit in Q1-2015 and the lack of significant inflationary pressures. BI expects the C/A deficit to narrow to 1.6% of nominal GDP in Q1-2015 from 2.8% in Q4-2014, and inflation to remain within BI's target range of 4-6% by year-end.
Recent comments by government officials also indicate the government's bias towards monetary policy easing to spur real GDP growth (4.7% y/y in Q1-2015, below market consensus).
A BI policy rate cut will likely be a sharp negative for the Indonesian rupiah (IDR). The previous surprise BI rate cut in February pushed USD-IDR c.4% higher in the subsequent one-month period.
"We maintain our view of continued IDR weakness in the short term", said Standard Chartered in a report on Friday.
Gold prices edged lower on Monday as stronger-than-expected U.S. nonfarm payrolls data dampened hopes for aggressive Federal Reserve rate cuts, bolstering the dollar. Spot gold slipped 0.1% to $2,686.32 an ounce, while F…
On-chain data shows BTC whales moved 10000 BTC from Crypto exchanges. This indicate accumulation of BTC by whales. Japanese public company Metaplanet buys another 1 billion yen worth of Bitcoin. According to Santiment, t…
Personal income increased by 0.2% month over month In August, which was less than the 0.4% market forecast and less than the 0.3% growth in July. For the third consecutive month, real personal disposable income increased…
