Jakarta, CNBC Indonesia- The Financial Services Authority (OJK) revealed a number of challenges to the Indonesian economy and financial markets as a result of external sentiment related to the Fed’s high interest rates and the turmoil of the Hamas-Israel war.
Director & CIO of Fixed Income Manulife Asset Management Indonesia (MAMI), Ezra Nazula sees that market concerns regarding the Fed are currently more related to the direction of the US Central Bank’s policy. The market expects the Fed to raise interest rates in December, not at the FOMC in November 2023.
Regarding the weakening of the Rupiah which fell to Rp. 15,895 per US Dollar in trading Monday (31/10), this cannot be separated from the strengthening of capital outflow. It’s just that the position of the Rupiah is still better than the currencies of peer countries and it is hoped that BI’s ammunition will be strong in preventing the weakening of the exchange rate.
How does the market view the current pressure on the Rupiah and capital markets? What are the current prospects for the Indonesian capital market? For complete details, see Shinta Zahara’s dialogue with the Director & Chief Investment Officer of Fixed Income PT Manulife Aset Manajemen Indonesia, Ezra Nazula at Power Lunch,CNBCIndonesia (Tuesday, 10/31/2023)