08:15 Video If This Happens, BI Rate Can Be Cut & Rupiah Gets Stronger My Money – 2 days ago

Jakarta, CNBC Indonesia- Bank Danamon economist, Irman Faiz projects that the Rupiah exchange rate will move stronger to the level of IDR 15,300-15,400 per US Dollar until the end of 2023, supported by fundamental factors and increasingly improving sentiment.

If indicators of the US economic slowdown continue, in 2024 the prospect of capital inflow to Indonesia will be even greater. The impact is that the era of interest rate cuts could begin as early as H2-2024, so that if Indonesia's current account deficit is still small, the strengthening of the Rupiah could reach a level below IDR 15,000/USD.

Meanwhile, Executive Director, Head of Trading Treasury & Markets Bank DBS Indonesia, Ronny Setiawan, assesses that the process of cutting interest rates will be initiated by the Fed before being followed by global central banks including Bank Indonesia.

Ronny projects that if the Fed can cut interest rates 5 times in 2024, BI will only cut 75bps.

What is the analysis of the Fed and BI's policy direction like? What is the impact on the Rupiah? For complete details, see Anneke Wijaya's dialogue with Executive Director, Head of Trading Treasury & Markets Bank DBS Indonesia, Ronny Setiawan and Bank Danamon Economist, Irman Faiz at Power Lunch,CNBCIndonesia (Monday, 18/12/2023)

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