Home News Morning Briefing: BI Rate Announces Today

Morning Briefing: BI Rate Announces Today

US Senat Passes COVID-19 Aids

Bank Indonesia (BI) will announced its monetary policy today and its expecting to cut its benchmark rate to help the economy - Photo by Bank Indonesia Office

JAKARTA (TheInsiderStories) – Good Morning! Bank Indonesia (BI) will announced its monetary policy today and its expecting to cut its benchmark rate to help the economy. Last month the central bank has sliced its seven days repo rate by 25 basis points to 4.25 percent.

European Central Bank (ECB) prepares EUR1.1 trillion (US$1.19 billion) bond buyback program at an emergency meeting yesterday. The policy taken to stop a pandemic rout shredding the eurozone’ economy and renew concerns about the bloc’ viability.

The bond purchases will continue until the “crisis phase” of the epidemic is over and non-financial commercial paper will also be included for the first time among eligible assets, the ECB said. The Euro rebounded after the announcement and up 0.16 percent at $1.0929 and Asian stock markets stabilized.

In United States (US), the Senate passed a more than $100 billion coronavirus aid package. The bill would only apply to coronavirus-related illnesses and would last only through the end of 2020.

The stimulus would provide free coronavirus testing for those who need it. It also provides $1 billion to the National Disaster Medical System to cover costs for people without medical insurance, enhanced unemployment benefits, enhance unemployment benefits, food assistant, and increase funding for medicaid program for the poor.

Donald Trump’ administration is looking at a $1 trillion package to soften the economic impact from COVID-19 that includes direct payment to taxpayers, federal tax relief and money for the airline industry and other affected sectors of the economy. Progress and details on this could help the yo-yo return to the hands of the bulls. JP Morgan rated, the US economy could shrink 14 percent in the next quarter.

In Asia, Reserve Bank of Australia pumped a record $7.4 billion into the banking system today. While, Saudi Arabia has called to convene an extraordinary virtual Group 20 Leaders’ Summit next week to advance a coordinated response to the COVID-19 pandemic and its human and economic implications.

On Wednesday, the virus outbreak worsened, has killed more than 8,700 people globally, infected more than 212,000 and prompted emergency lockdowns on a scale not seen in living memory. Italy reported the largest single-day death toll from coronavirus

In Indonesia, the COVID-19 task force reported 19 were death, 227 infected, and 11 healed. The pandemic now spread across the archipelago. Fnance minister Sri Mulyani Indrawati claimed, the government has prepared Rp27 trillion ($1.8 billion) to fight the virus outbreak.

While, minister of trade, Agus Suparmanto assured, the  government continues to anticipate the availability of supply of goods and prices amid the pandemic. To keep the supply goods and the prices, he freeing imports of garlic and onions promulgated starting today and will take effect tomorrow until May 31.

In a limited meeting on Wednesday, President Joko Widodo agreed to set gas price for industry $6 per MMBtu and to be effect starting April 1. Industry ministry, Agus Gumiwang Kartasasmita has proposed other 430 companies to get the benefit and also considers another 319 firms, such as pulp & paper and tyre.

He also urged his staffs to prepared National Logistical Ecosystem to reduces the logistic costs in the country. He revealed the culprit made logistics costs in Indonesia could reach 24 percent of gross domestic product or equivalent to Rp3,560 trillion. Today, he has scheduled to lead a limited meetings on COVID-19 Task Force Team and Indonesian Maritime Policy.

On Thursday, oil prices surged as much as nearly 20 percent, bouncing back from days of heavy losses in a relief rally that may yet be short-lived. Brent crude was up 8 percent to $26.98 a barrel and West Texas Index gained 17 percent to $23.81 a barrel after slumping nearly 25 percent in the previous session.

In the stock market, Wall Street tumbled although closing well off the lows. Asian stocks also struggled to find their footing in volatile trade, as the latest promise of stimulus from the ECB propped up sentiment while the world struggles to contain the coronavirus.

In currency markets, the US Dollar is king and jumped to a three-year high overnight amid a rush for the world’ reserve currency in times of crisis. The investors worry about potential dollar-funding issues amid the “most unexpected recession” in modern times.

In Indonesia, Rupiah dropped 0.33 percent to 15,223 against the Greenback. The Jakarta Composite Index (JCI) also closed down 2.83 percent to 4,330.67. Year to date, the stock index has decreased by 31.25 percent.

Today, the analysts rated the local currency move in the range 15,200 – 15,300 a US Dollar. While the JCI between 4,207 to 4,551.

The stocks to be watch are PT Bank Permata Tbk (IDX: BNLI), PT Bank Mandiri Tbk (IDX: BMRI), PT Bumi Serpong Damai Tbk (IDX: BSDE), PT Erajaya Swa Sembada Tbk (IDX: ERAA), PT Telkom Indonesia Tbk (IDX: TLKM), PT Bank Central Asia Tbk (IDX: BBCA), PT HM Sampoerna Tbk (IDX: HMSP), PT Bank Negara Indonesia Tbk (IDX: BBNI), PT Astra Intenational Tbk (IDX: ASII), PT Gudang Garam Tbk (IDX: GGRM), and PT Bank Rakyat Indonesia Tbk (IDX: BBRI).

US$: EUR0.92, Rp15,000

May you have a profitable day!

Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information about Indonesia