Halister News

(Bloomberg) -- Rupiah declines following yesterday’s BI decision to leave reference rate at 6.75%, as expected; 2016 GDP growth forecast was cut to 5.0%-5.4% y/y.

• On forward guidance, BI was slightly more dovish than in the previous month, noting that if macroeconomic conditions remained stable, the “room for monetary easing that has been opened may be used at an earlier time,” Goldman Sachs economists write in note received today
  • In press conference, deputy governor noted a 57 bp drop in deposit rates and 22 bp drop in lending rates through April, of the 75 bp cut delivered so far: GS
• Rupiah drops 0.2% to 13,568 per dollar, falling for third day
• USD/INR 1-month NDF targets 13,788/13,800 area, consisting of 200-DMA and Feb. 9 high, Axel Rudolph, analyst at Commerzbank, writes in note dated May 19; now down 0.1% to 13,670
• Five-year credit-protection costs for Indonesia rose 6 bps to 200 bps, highest in a month, according to CMA New York data
• Yield on 8.375% govt bond due Sept. 2026 rose 12 bps to 7.804% yesterday, according to IDMA data
• International investors sold net $52m of Indonesian equities yesterday, according to exchange data