Fixed Income Update 17 Oct 2024
KBVS WEEKLY FIXED INCOME UPDATE
Thursday, 17 October 2024
Welcoming the Euphoria of a New Government
The decline in US inflation data, particularly the CPI, has remained subdued. This, coupled with statements from several Fed members indicating a resilient labor market, has led to expectations that the upcoming Fed rate cut in the next FOMC meeting will be relatively limited. At the same time, the likelihood of a more significant rate cut by the Bank of England (BoE) and an earlier rate cut by the European Central Bank (ECB) contributed to a sharp increase in the DXY index last week.
Domestically, the potential continuation of prudent fiscal policies, especially with the possibility of Sri Mulyani retaining her position as Finance Minister under President Prabowo’s leadership, has generated positive market sentiment. Meanwhile, Bank Indonesia’s pro-stability stance, as reflected by its decision to maintain the BI rate at 6.00%, has also supported the stability of the Rupiah.
Regards,
KBVS Research Team