JAKARTA (TheInsiderStories) — Good morning! Bank Indonesia executive director Nanang Hendarsah said the central bank will start to active Two Way Open Market Operation (liquidity management) starting today (05/06), with variable rate tender on both side.
While Statistic Indonesia to release the nation’ economic growth data. Some observer sees the country economy grew 5.17 to – 5.19 percent in first quarter of this year from a year ago 5.06 percent.
From global side, in his twitter account, United States’ President Donald Trump starting this Friday (05/10) said the country will rise tariffs on the US$200 billion of Chinese after 10 months has been paying tariffs to the country of 25 percent on $50 billion of High Tech products and 10 percent on $200 billion of other goods.
This week, China’ Vice Premier Liu He visit Washington DC for the last trade talks, following US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin visit to Beijing last week. Soon after this, US President Donald Trump and Chinese President Xi Jinping will decide whether they’ll meet to sign off on a pact.
Moreover, Canada is now depending on the US to help settle dispute with China, which has started to block imports of vital Canadian commodities, followed the detainment of Huawei Technologies Director Meng Wanzhou, last December. China halted Canadian canola imports and last week suspended the permits of two major pork producers.
Then, United Kingdom’ parliament member from Labour party, John McDonnell, told BBC that British Prime Minister Theresa May has broken the terms of confidential talks with the opposition Labour Party on a Brexit compromise. He said, May can no longer be trusted. Nevertheless, McDonnell stated talks would continue later this week and if a deal could still be struck, it must be concluded quickly.
Ahead of this week, beside economic growth data, Indonesia will announce some daily economic data. Those are retail sales survey report on Tuesday, foreign exchange reserve statistics on Wednesday, quarterly residential property price survey report on Thursday, and first quarter balance of payment on Friday.
The England will publish its first quarter GDP and manufacturing production data. Then, European Central Bank (ECB) will publish monetary policy meeting, with the President Mario Draghi speaking. Central banks in Australia, New Zealand, Malaysia, Thailand and the Philippines will all decide monetary policy amid gathering signs the region is going to soon start cutting interest rates.
US Federal Reserves’ chairman Jerome Powell is going to give speech, expected to drop hints regarding its future monetary policy. Other than that, for the US, there’ll be data of crude oil inventories, producer price index, and core consumer price index.
End of last week, Rupiah closed up to 14,303.80 and its expected this week going stronger supporting by several economic data.
May you have a profitable week!
Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information about Indonesia