MNI: PBOC Net Injects CNY213.8 Bln via OMO Tuesday

MNI: PBOC Sets Yuan Parity Higher At 7.1891 Tues; -2.09% Y/Y

MNI BRIEF: Liberal Lawmaker Says Trudeau Needs To Step Aside

MNI BRIEF: US ISM Expects Increased Revenues, Sticky Prices

MNI NBH WATCH: Policy Pause To Continue, Fresh Projections Due

MNI NBH POLICY: NBH To Hold Rates As Inflation In Line

EZ/UK T-Bill Calendar: 1/3/6-Month UKTB Auction on Friday

MNI: US DEC FLASH MANUF PMI 48.3 (FCST: 49.5); NOV 49.7

MNI: US NY FED EMPIRE STATE MFG INDEX 0.2 DEC

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

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

MNI BI Preview-December 2024: IDR To Keep BI On Hold

The December Bank Indonesia (BI) rate decision is likely to be close but we expect no change given the soft IDR.
Asia Bank - PreviewBank of Indonesia - PreviewAPACAnalysisEM Central Bank ReportsEM Central Bank PreviewIndonesiaStory

EXECUTIVE SUMMARY:

  • The December Bank Indonesia (BI) rate decision is likely to be close reflected by the 18 analysts on Bloomberg expecting rates to be held at 6.0% and 13 forecasting a 25bp rate cut. 
  • USDIDR reaching 16000 probably means that BI will remain on hold as it focuses on FX and financial stability. It is likely to continue to use its macroprudential tools to support growth through increased lending and jobs rather than lower rates while the rupiah is at this level.
  • The stronger US dollar following Trump’s US election victory has been a large part of the FX story but concerns that his trade policies will impact Asian economies and uncertainties around the fiscal policy of Indonesia’s new President Prabowo have also contributed. 
  • BI has said that further easing will depend on movements in the currency and the inflation outlook as well as other data and “emerging dynamic conditions”: Those conditions will likely need to stabilise somewhat.

FOR THE FULL PUBLICATION PLEASE USE THE FOLLOWING LINK:  BI Preview - December 2024.pdf

171 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:

  • The December Bank Indonesia (BI) rate decision is likely to be close reflected by the 18 analysts on Bloomberg expecting rates to be held at 6.0% and 13 forecasting a 25bp rate cut. 
  • USDIDR reaching 16000 probably means that BI will remain on hold as it focuses on FX and financial stability. It is likely to continue to use its macroprudential tools to support growth through increased lending and jobs rather than lower rates while the rupiah is at this level.
  • The stronger US dollar following Trump’s US election victory has been a large part of the FX story but concerns that his trade policies will impact Asian economies and uncertainties around the fiscal policy of Indonesia’s new President Prabowo have also contributed. 
  • BI has said that further easing will depend on movements in the currency and the inflation outlook as well as other data and “emerging dynamic conditions”: Those conditions will likely need to stabilise somewhat.

FOR THE FULL PUBLICATION PLEASE USE THE FOLLOWING LINK:  BI Preview - December 2024.pdf