The increase in BI’s 7DRRR in September to +50Bps, is a monetary dose of BI that is rarely given. NHKSI Research sees BI Front Loaded Hawkish’s aggressive decision, in order to suppress inflation according to the target below 4% YoY until 1H23 ahead. This continued Hawkish also, at the same time made the 4Q22 domestic economy face an era of high interest rates. From a global perspective, the third FFR +75Bps increase opened the way for the aggressive Hawkish of a number of other Central Banks, increasing the risk of a global economic recession.
Corporate Bonds
BBTN: Profit Breaks IDR1.97 T. PT Bank Tabungan Negara (Persero) Tbk (BBTN) recorded a 1H22 profit of IDR1.97 trillion or a 57.12% YoY jump on the back of a 30.61% surge in net interest income to IDR10.12 trillion. As of August 2022, the Company recorded a credit position of IDR256.22 trillion, an increase of 6.09% YoY. (Emiten News)
Domestic Issue
BI Expects September 2022 Inflation to Reach 1.1%. Bank Indonesia (BI) estimates inflation in September 2022 to reach 1.1% MoM, with the main contributor to the increase in fuel prices. This estimate is based on the results of the Price Monitoring Survey (SPH) in the fourth week of September 2022. Meanwhile, the main commodities contributing to inflation in September 2022 until the second week are gasoline by 0.91% MoM and urban transportation by 0.05% MoM. (Investor Daily)
Recommendation
The absence of the October FOMC Meeting gave the government securities market the opportunity to determine its own direction of movement. Previously, the FOMC Meeting Results tended to be a weighting sentiment for the JCI. Furthermore, the lack of sentiment this week has made investors start to pay attention to the release of Indonesia Headline Inflation data for September, Monday (3/10) next week, which is projected to record an increase rate of 5.90% (Vs. Aug. 4.69%).
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