- Fed Chairman's speech at Jackson Hole and the latest FOMC minutes strengthen expectations of a rate cut at the September meeting.
- A stronger IDR and increased foreign portfolio inflows give BI more room to begin easing. We revised down our yield assumption.
- The recent success of the DNC has boosted Kamala Harris's chances of winning, though some of her agendas may pose inflationary risks.
HIGHLIGHTS
- The Time Has Come
- Bank Indonesia has a clearer path forward
- Trump vs. Harris: The Latest Tally
- Capital Market – Bullish Trend Continues on Rate Cut Expectation
- Fixed Income Flows
- State Sharia Securities (SBSN) Auction Plan: August 27, 2024
This Week Key Focus
- US PCE – July 2024 (Friday)
- US GDP – 2Q24 2nd Estimate (Thursday)
- Eurozone Inflation – Aug’s first estimate (Friday)
Last week Key Events
GLOBAL UPDATES
- China Banks maintained the 1Y and 5Y Loan Prime Rate at 3.45% and 3.85%, respectively
- The Fed Chairman Jerome Powell stated that the time has come for policy to adjust
DOMESTIC UPDATES
- Bank Indonesia (BI) decided to keep the BI Rate unchanged at 6.25% in Aug’s meeting
- Indonesia Current Account deficit widened to USD3bn in 2Q24 (0.9% of GDP)
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