BI 7DRRR September’s hike to +50Bps, is a BI’s monetary dose 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 +75 bps hike opened the way for the aggressive Hawkish of a number of other central banks, increasing the risk of a global economic recession, causing JCI to fail to close above the psychological 7,200 level over the weekend. Meanwhile, foreign investors recorded Net Sell IDR494Billion a week (Vs. Net Buy IDR359Billion a week earlier), with the Rupiah depreciating beyond the level of IDR15,000/USD.
Download full report HERE.