JAKARTA (TheInsiderStories) – Good Morning! Starting today, Bank Indonesia (BI) held a board of governors meeting to take monetary policy in June. Last month the central bank hold the benchmark rate at 6 percent.
The Governor Perry Warjiyo sees room to cut the interest rates but not giving any indication of the timing. As of now, he rated, the global financial market condition is still full of uncertainties related to trade war, Brexit, geopolitics tension and others, which can lead to capital flows reversal and bring risks in financing the current-account deficit.
Central banks around the globe have been shifting to a looser monetary policy position as they look to counter slowing demand with India, Australia, New Zealand, the Philippines and Malaysia all cutting rates in recent weeks.
If it lowers the rate, it would be the first cut since September 2017, and mark the beginning of an unwinding of a tightening cycle that began in May last year and delivered a total of 175 basis points of hikes.
While, President European Central Bank Mario Draghi opined rate cut as primary tool for new stimulus for the region. Immediately, United States’ President Donald Trump insulted the plan was unfair for his country.
He rated the decision making it unfairly easier for Europe to compete against the US. “They have been getting away with this for years, along with China and others.” Yesterday, Euro dropped against the US Dollar and European market way up after Draghi‘ remarked.
At the meantime, Trump shouted he will meet Chinese President Xi Jin Ping next week at the sidelines meeting of G20 leaders in Osaka, Japan, to relaunch trade talks. His statement triggering a rally in financial markets.
On Wednesday, US stocks extended gains on the news, while treasuries retreated. The S&P 500 rose about 1 percent and Asian stocks advanced.
Trump admitted had a “very good” phone conversation with and the teams will begin talks prior the meeting. Trump had repeatedly threatened more tariffs if Xi spurned the opportunity to talk.
Followed the heat tension in the Middle East, Germany’ Chancellor Angela Merkel said is doing all it can to defuse heightened tensions with Iran in a peaceful way. She urged that Iran must stick to the 2015 international nuclear agreement.
Related to Prabowo Subianto – Sandiaga Salahuddin Uno’ lawsuit, the panel judges of the Constitutional Court rejected a request letter submitted by the legal team to protect the witnesses to be presented in the 2019 presidential election trial.
In the first hearing on Tuesday, the General Election Commission rejected all claimed by the opposition lawyer. According to its lawyer Alex Nurdin, the election body has running the selection process in accordance with the procedure.
Yesterday, Indonesian Rupiah strengthened to 14,292 against the US Dollar. This morning the local exchange rate open higher at 14,272 over the Greenback.
Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information about Indonesia