The impact of the Jackson Hole Symposium Result will only be seen on the market on Monday. SUN market relatively mixed for a week, amid the annual Jackson Hole symposium meeting which began Thursday, and the Fed’s chair is scheduled to give a speech on Friday. Meanwhile, US Headline CPI expectations for Jun. YoY has peaked +9.1% (Vs. Jul. +8.5%), and some economists project September FFR increase of only +50Bps to 2.75%-3.00%. Meanwhile, there is speculation that front loading will continue, or the September FFR increase of +75 bps, causing SUN market mixed last Friday. Meanwhile, BI’s Hawkish policy to raise BI 7DRRR Aug. +25Bps unexpectedly, also affected market movement last week.
Chandra Asri Will Issue Bonds Again. PT Chandra Asri Petrochemical Tbk (TPIA) will again raise external funding. This petrochemical issuer plans to issue bonds again next year. TPIA does have a big agenda to raise funds of up to IDR 8 trillion through the Chandra Asri Petrochemical IV Sustainable Public Offering (PUB) program. Recently, this agenda was realized through the issuance of Sustainable Bonds IV Phase I Year 2022 with a principal amount of IDR 2 trillion in August 2022. (Kontan)
Banking Industry Sets to Raise Interest Rates. The banking industry is ready to raise interest rates in line with Bank Indonesia’s policy of raising the benchmark interest rate by 25 basis points to 3.75 percent. However, a number of parties see that the transmission of the BI rate hike cannot be directly transferred to bank loans. There must be a period of time due to various factors considered, such as liquidity, deposit structure, and each bank’s loan. (CNN Indonesia)
BI keeps inflation under 5%, Government maintains GDP above 5%. Aug. CPI which is projected to break through 5% YoY is one of the factors for BI to tighten the Monetary Policy. However, as there is no increase in Administered Prices for the August period, may mean the period will book -0.15% MoM, and NHKSI Research sees that a +25Bps increase in BI 7DRRR is appropriate, as it maintains the growth momentum of FY22E GDP above 5%.
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