Bank Indonesia (BI) staged a two-day meeting on 16-17 May 2018. The management of PT Indonesia stock exchange (idx) rate, need to consider the current situation of BI-related bomb and rampant action external uncertainty so that need to maintain the interest rate reference or BI 7 days repo rate.
Enemy of the high interest of the stock market. Because of later deposits. It is now 4.25 percent. All there is momentum. The situation demand rising interest is already quite a long time the fed rise (in interest rates), Indonesia has yet to raise. said Director of Indonesia stock exchange (idx).
With the exchange rate of the rupiah depressed into 14,000 per u.s. dollar, there is hope of BI can immediately adjust interest rates. The steps to stabilize the exchange rate of the rupiah. However, Tito said, conditions are now different that BI is expected to maintain benchmark interest rates.
The impact is nothing like two weeks ago. People already restore in. Raise mortgage interest rates rising cost of fund. Medium-term raise demand for dollars. Now if I had better stay (rates-red).
Tito said, there are a number of factors make BI maintain interest rate reference. One such bomb terror action. It raises the uncertainty in the market. Plus external conditions with potential trade war between the United States and China and the policy of u.s. President Donald Trump.
Tito said, the United States (u.s.) economy is being good contributing to strengthening United States dollar. To deal with it, according to Tito, the Government needs to provide the certainty of energy subsidies are mainly considering the rising world oil prices. Whereas the Government of Indonesia dependent on oil imports. On the other hand, Indonesia is also facing a political year.
Kuatkah State question? Import 800 thousand barrels of oil per day. The needs of approximately USD 60 million. Statement of Rp 10 trillion subsidy want charged to Pertamina. Still under discussion, the STATE BUDGET will be exposed. Not what but a certainty. Investors calculate the power of the State through STATE BUDGET.
Bankers Predicted BI Interest Rate Raise
Earlier, PT Bank Central Asia Tbk or BCA readiness Bank Indonesia (BI) to raise the reference interest rate or 7-Day Reverse Repo Rate is in compliance with market expectations.
I think as market expectations, yes we also expect a positive thing it seems to me if it's going up, "said Director of finance PT Bank Central Asia Tbk (BCA), Vera Eve Lim, in Jakarta, Tuesday, May 15, 2018.
Vera estimates the magnitude of the increase in the reference interest rate to 25 basis points (bps). However, he said the banking is not possible directly raise rates on credit.
At least 25 bps-lah huh. I think if 25 bps baseball too influential to the mortgage interest. And momentumnya we must keep.
Currently, he said, credit growth in the quarter II-2018 in pretty good condition, even better than last year so it does not need to directly raise interest credits in order not to interfere with the condition.
Earlier, BI consider reference to raise rates. This is in response to control the exchange rate of rupiah continue to weaken until translucent 14,000 per u.s. dollar.
BI Senior Deputy Governor Mirza Adityaswara said, the matter will be discussed in the meeting of the Board of Governors (RDG) held by the middle of this month.
Bank Indonesia already convey that later on there May 16-17 date RDG RDG monthly to determine the direction of monetary policy.