MNI: Fed: Policy Well Positioned To Respond To Risks

CANADA JUNE JOBS -1.4K VS FORECAST +20K, PRIOR +26.7K

MNI China Daily Summary: Friday, July 5

MNI BRIEF: PBOC Plans To Borrow Hundred Bln Yuan CGB - Press

MNI: PBOC Net Drains CNY48 Bln Via OMO Fri; Rates Unchanged

MNI: PBOC Sets Yuan Parity Lower At 7.1289 Fri; -0.35% Y/Y

MNI: BAKER HUGHES US RIG COUNT 585; OIL RIGS 479; GAS RIGS 101

EZ/UK T-Bill Calendar: Germany, France to Issue Bills Monday

EZ/UK Bond Supply Calendar: EU/UK Syndications Due Next Week

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

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

MNI Bank Indonesia Preview – June 2024: Hawkish Hold, Hike Risk

Bank Indonesia (BI) is widely expected to leave rates at 6.25% at its meeting on June 20.

Asia Bank - PreviewHomepageBank of Indonesia - PreviewEM Central Bank ReportsEM Central Bank PreviewEmerging Market News

EXECUTIVE SUMMARY:

  • Bank Indonesia (BI) is widely expected to leave rates at 6.25% at its meeting on June 20 but given that the rupiah has weakened further since the May meeting, there is a risk that it decides to hike again to defend the currency as it did in April and last October.
  • CPI inflation remains well within the 1.5-3.5% target band and BI is likely to reiterate its confidence that it will stay there. The main concern is the weaker currency boosting imported inflation.
  • FX stability remains a concern and BI has continued to intervene to support the currency since its last meeting. USDIDR is up 2.3% since the May 22 meeting and 1% since the April rate hike. The move has not just been driven by a stronger US dollar but also concerns over Indonesia's fiscal outlook.
  • While BI is working to contain IDR depreciation, rate cuts are off the table and probably won’t be considered until it is clear the Fed will ease and when it will start.

Click here for full preview:

BI Preview - June 2024.pdf

185 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.

EXECUTIVE SUMMARY:

  • Bank Indonesia (BI) is widely expected to leave rates at 6.25% at its meeting on June 20 but given that the rupiah has weakened further since the May meeting, there is a risk that it decides to hike again to defend the currency as it did in April and last October.
  • CPI inflation remains well within the 1.5-3.5% target band and BI is likely to reiterate its confidence that it will stay there. The main concern is the weaker currency boosting imported inflation.
  • FX stability remains a concern and BI has continued to intervene to support the currency since its last meeting. USDIDR is up 2.3% since the May 22 meeting and 1% since the April rate hike. The move has not just been driven by a stronger US dollar but also concerns over Indonesia's fiscal outlook.
  • While BI is working to contain IDR depreciation, rate cuts are off the table and probably won’t be considered until it is clear the Fed will ease and when it will start.

Click here for full preview:

BI Preview - June 2024.pdf