08 Jul 2024 | News & Feature

TFP W28 2024: Turning the tide

  • The normalising CA outlook following the seasonal spike in Q2 2024 and the returning foreign capital inflows may help the Rupiah to be more stable in the months ahead.
  • The improving bank liquidity condition may further strengthen the Rupiah’s fundamentals, albeit the improvement is more driven by lower consumption.
  • The now-stable Rupiah lowers the urgency for BI to adjust its policy rate, but efforts to prematurely loosen the financing condition may again expose the Rupiah to higher volatility.