- The FFR remains unchanged at 4.50-4.75%, in line with market expectations, given the stabilizing US labour market and the risk of renewed inflationary pressures.
- Despite the hawkish tilt in recent FOMC remarks, the USD index and UST yields are declining, as markets appear to appreciate the US government’s gradual policy implementation.
- Global financial market shocks are likely to challenge the Rupiah’s newfound stability, potentially prompting BI to rely on non-rate policy tools.