August 06, 2024 02:08 GMT
Room To Pause For The BI
INDONESIA CENTRAL BANK
Yesterday's GDP print confirmed that the Central Bank has room to pause ahead of the expected cut in rates by the Federal Reserve in September and gain greater insight into the Prabowo government's intention on spending.
- Indonesia's GDP expanded ahead of expectations at 5.05% for the second quarter; and the third quarter in a row above 5%
- Household expenditure grew 4.9%
- Government expenditure grew 1.4%
- Investment growth expanded at 4.4%
- Exports remain sluggish and imports volatile.
- Oil price volatility and regional trade key to coming month's trade data.
- The new Prabowo led government takes power in October and has stated growth targets of 8%
- The slower than anticipated government spending outcome points to the opportunity for the new government to detail on targeted spending programs to boost growth.
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