Fixed Income Update 12 Dec 2024
KBVS WEEKLY FIXED INCOME UPDATE
Thursday, 12 December 2024
Positivism Welcomes 2025
Expectations of further Federal Reserve rate cuts are anticipated to bolster global market sentiment towards the end of 2024. However, consecutive increases in the US Consumer Price Index (CPI) over the past two months are projected to hinder additional rate reductions in 2025.
Domestically, rising consumer confidence toward the end of 2024, indicating increased consumer demand, is expected to provide positive momentum for the Indonesian economy. This is further anticipated to be supported by a nationwide average increase of 6.5% in the minimum wage in 2025. Additionally, maintaining a controlled budget deficit is expected to contribute to further positive momentum as we enter 2025.
Regards,
KBVS Research Team