JAKARTA (TheInsiderStories) – Good Morning! Bank Indonesia has an agenda to releases the latest monetary policy this afternoon after last month cut the interest rate to 3.50 percent. While, the Federal Open Market Committee left its benchmark rate unchanged in the range and said it would continue its US$120 billion monthly bond purchases.
The policymakers appear in no hurry to hike rates, continuing to back them at near-zero through 2023 despite hiking their outlook on growth. In South America, Brazil’ central bank raised its benchmark interest rate for the first time in nearly six years to 2.75 percent to fight the inflation even. Brazil’ death toll and number of cases only lag behind that of the United States (US), with its economy predicted to contract again in the first quarter of this year.
From Europe, Russia is recalling its ambassador in US for consultations on the future of both relations. The move came after President Joe Biden said Vladimir Putin would “pay the price” for alleged election interference in America. He issued his threats after US intelligence reports supported longstanding allegations that him was behind election interference in US.
In Asia, Taiwan has strengthened military deployments in the disputed South China Sea. China, which claims Taiwan as its own territory, has stepped up its military activity near the island in recent months with the aim of pressuring Taipei to accept Beijing’s sovereignty.
In the commodity market, oil prices slipped for a fourth day weighed by concerns about weaker demand in Europe and rising US crude inventories. As reported, several European countries have paused the use of AstraZeneca’ COVID-19 vaccine on worries over possible side effects.
Germany is seeing rising coronavirus cases, Italy is imposing a nationwide Easter lockdown and France plans to impose tougher curbs. On Wednesday, Brent crude price was down 1.3 percent to US$67.48 a barrel West Texas Intermediate oil prices dropped 0.9 percent to $63.93 per barrel. Oil has recovered from historic lows reached last year as demand collapsed, buoyed by record oil output cuts by the Organization of the Petroleum Exporting Countries and its allies.
Yesterday, Indonesian Rupiah weakened 3.58 percent to 14,428 per US Dollar and the Jakarta Composite Index (JCI) closed down 0.51 percent to 6,277.23 compared to the previous day. The analysts assessed that the weakening of both was driven by foreign investors’ expectations of US inflation and economic growth.
The US has announced that economic growth in the fourth quarter of 2020 will reach 4.1 percent, higher than market forecasts. In the country, they said, the sentiment came from the government which openly had concerns about future economic threats due to the sluggishness stimulus policies, which resulted in commodity prices.
This concern refers to the World Economic Forum Report which described many countries are faced with the consequences of policies taken when facing a pandemic. With these various information, the Rupiah is estimated to move in the range 14,400 – 14,450 per US dollar and JCI between 6,260 – 6,389.
Stocks that can be watched today are PT Astra Agro Lestari Tbk (IDX: AALI), PT Astra International Tbk (IDX: ASII), PT Bank Negara Indonesia Tbk (IDX: BBNI), PT Telkom Indonesia tbk (IDX: TLKM) PT Bank Central Asia Tbk (IDX: BBCA), PT Jasa Marga Tbk (IDX: JSMR), PT Wijaya Karya Tbk (IDX: WIKA), and PT PP Tbk (IDX: PTPP).
May you have a profitable Day!
Written by Linda Silaen and Editorial Team, Please Read Our News to Get More information about Indonesia