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INDONESIA: Country Wrap: BI on Hold with Eyes ON Rupiah. 

INDONESIA
EM BulletBulletIndonesiaAPACEmerging Market News
  • Late yesterday we had the no change decision from BI, which provided some relief for the rupiah but follow through has been very limited. Sell-side analysts see the BI outlook being somewhat dependent on how USD/IDR trends evolve (per BBG). This comes after the earlier decision this year by BI to cut rates despite rupiah weakness, which left the market questioning whether BI policy goals were shifting away from financial stability and more towards growth.  Yesterday's hold decision is likely giving some providing some relief rupiah stability is still a focus point. (source: MNI – Market News)
  • Indonesia’s Energy Minister indicated that the current ban on export of copper and copper concentrates will be gradually relaxed. (source: BBG)
  • Indonesia’s Central Bank (the BI) purchased IDR33.4tn of government bonds month to date in a statement released by the Governor (source: BI).
  • The Jakarta Composite was one of the better regional performers today, flat on the day as peers were lower.
  • IDR: the rupiah was one of the few regional peers that fell today, down marginally at 16,336 a fall of -0.06%.
  • Bonds: the bond market responded well to the BI decision with the INDOGB 10YR at 6.80% (-1.5bp lower).  
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  • Late yesterday we had the no change decision from BI, which provided some relief for the rupiah but follow through has been very limited. Sell-side analysts see the BI outlook being somewhat dependent on how USD/IDR trends evolve (per BBG). This comes after the earlier decision this year by BI to cut rates despite rupiah weakness, which left the market questioning whether BI policy goals were shifting away from financial stability and more towards growth.  Yesterday's hold decision is likely giving some providing some relief rupiah stability is still a focus point. (source: MNI – Market News)
  • Indonesia’s Energy Minister indicated that the current ban on export of copper and copper concentrates will be gradually relaxed. (source: BBG)
  • Indonesia’s Central Bank (the BI) purchased IDR33.4tn of government bonds month to date in a statement released by the Governor (source: BI).
  • The Jakarta Composite was one of the better regional performers today, flat on the day as peers were lower.
  • IDR: the rupiah was one of the few regional peers that fell today, down marginally at 16,336 a fall of -0.06%.
  • Bonds: the bond market responded well to the BI decision with the INDOGB 10YR at 6.80% (-1.5bp lower).