MNI: PBOC Net Injects CNY141.9 Bln via OMO Thursday

MNI: PBOC Sets Yuan Parity Lower At 7.1934 Thurs; -0.93% Y/Y

CHINA PBOC CONDUCTS CNY470.1 BLN VIA 7-DAY REVERSE REPOS THURS

CHINA SETS YUAN CENTRAL PARITY AT 7.1934 THURS VS 7.1935

MNI China Daily Summary: Wednesday, November 20

MNI BRIEF: Chinese Aluminium Exporters To Renegotiate Prices

EZ/UK Bond Supply Calendar: Spain, France Auction; UK Tender

US EIA: CRUDE OIL STOCKS EX SPR +0.54M TO 430.3M NOV 15 WK

MNI: US MBA: MARKET COMPOSITE +1.7% SA THRU NOV 15 WK

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

MNI EXCLUSIVE: German Turmoil Dashes EU's Joint-Funding Hopes -Officials

FED: Powell's Time Looks Up, Replacement Could Be Less Willing To Cut Rates?

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

INDONESIA:  BI Holds, Sees Less Room to Ease Further. 

INDONESIA
EM BulletBulletIndonesiaAPACEmerging Market News
  • Bank Indonesia (“BI”) kept rates on hold yesterday at 6.00% overnight.
  • BI Governor Warjiyo indicated in his press conference that given the Bank’s focus on maintaining currency stability, the prospects of further cuts has now narrowed.
  • Governor Warjiyo spoke to the strength of the domestic economy being overshadowed by ‘rapid development in global dynamics' and that the BI’s focus for their monetary policy is aimed at ‘strengthening the stability of the rupiah from global geopolitical and economic uncertainties.’
  • Governor Warjiyo forecast that the US monetary policy easing cycle will be limited and the likelihood for trade tariffs and an expansive fiscal policy as factors that will support USD assets in 2025.
  • Having closed Tuesday at 15,830 IDR pushed as high as 15,870 during the press conference only to close at 15,865.
  • Market observers (including MNI – Market News) were skewed towards no change in policy with 27 of 35 economists surveyed by BBG forecasting no change.
  • Indonesia’s monetary policy is well supported by their International Reserves of US$151bn, the highest they have been.   
  • Indonesia’s 2-year government bond (the most sensitive to interest rate expectations) sold off 4bps yesterday to finish at 6.597% whilst the 10-year (the most sensitive to long term growth prospects) moved 1bp higher to 6.901%.
  • BI issued a press release yesterday providing their forecasts for the full year 2024 with GDP growth to be in a region of 4.7%-5.5% , inflation 1.5%-3.5% and the current account deficit with a range of 0.1%-0.9% of GDP. 
243 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
  • Bank Indonesia (“BI”) kept rates on hold yesterday at 6.00% overnight.
  • BI Governor Warjiyo indicated in his press conference that given the Bank’s focus on maintaining currency stability, the prospects of further cuts has now narrowed.
  • Governor Warjiyo spoke to the strength of the domestic economy being overshadowed by ‘rapid development in global dynamics' and that the BI’s focus for their monetary policy is aimed at ‘strengthening the stability of the rupiah from global geopolitical and economic uncertainties.’
  • Governor Warjiyo forecast that the US monetary policy easing cycle will be limited and the likelihood for trade tariffs and an expansive fiscal policy as factors that will support USD assets in 2025.
  • Having closed Tuesday at 15,830 IDR pushed as high as 15,870 during the press conference only to close at 15,865.
  • Market observers (including MNI – Market News) were skewed towards no change in policy with 27 of 35 economists surveyed by BBG forecasting no change.
  • Indonesia’s monetary policy is well supported by their International Reserves of US$151bn, the highest they have been.   
  • Indonesia’s 2-year government bond (the most sensitive to interest rate expectations) sold off 4bps yesterday to finish at 6.597% whilst the 10-year (the most sensitive to long term growth prospects) moved 1bp higher to 6.901%.
  • BI issued a press release yesterday providing their forecasts for the full year 2024 with GDP growth to be in a region of 4.7%-5.5% , inflation 1.5%-3.5% and the current account deficit with a range of 0.1%-0.9% of GDP.