JAKARTA (TheInsiderStories) – The latest survey conducted by Bank Indonesia showed the Consumer Confidence Index (CCI) fell to 124.7 in July compared to June 126.4. The central bank rated that consumer optimism is supported by improving expectations of future economic conditions.
The respondents predicted rising incomes in the next six months, which raised expectations concerning future economic conditions as indicated by a stronger Consumer Expectation Index (CEI). The CECI was observed to decline on the previous period, weighed down by weaker consumer confidence regarding current job availability.
The survey also showed how consumers expected an accumulation of inflationary pressures until January 2020 in line with the cyclical spike in demand for goods and services during beginning of year period. This was confirmed by an uptick in the six-month Price Expectations Index (PEI) to 174.9 from 170.3 in the previous period.
Since last week, various economic data has created the volatility in the market. External and domestic factors successfully triggered a selloff with great intensity on the country’ stock exchange.
This morning in the spot market, Rupiah against the US dollar dropped 0.42 percent to 14,310 compared to Monday. This weakening is the lowest since May 30
Nanang Hendarsah, executive director of the BI stated that the central bank now entered the government bond market and foreign exchange market. He admitted that BI is protecting the rupiah by entering the government bond market.
“While for intervention in the DNDF (Domestic Non-Deliverable Forwards) market will continue,” he said.
While, since early August, the Jakarta Composite Index has collapsed by 5.01 percent. This morning, the composite stock index fell 1.71 percent to 6,070.17.
The price of government bonds also under pressure. This makes the price correction of the State bond have occurred for seven consecutive days. On Tuesday morning, the yield on the 10-year tenor reference bond price surged 10.5 basis points due to the selling pressure.
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