US Inflation Reported 3.2% in July<\/b><\/p>\n
The United States stock market, the S&P 500, closed down by -0.31% throughout last week's trading. The inflation report showed that the consumer price index (CPI) rose slightly to 3.2%, compared to 3% in June. However, the overall picture shows a slowdown in inflation. According to RSM US LLP economist, Joe Brusuelas, this inflation figure supports expectations of a temporary suspension of interest rates by the Fed for September and is good economic news considering the level of inflation last year. According to the CME FedWatch Tool, market participants predict with 88% confidence that the Fed will hold interest rates at its next meeting in September. Apart from that, another reason for the market decline this week was the decline in the technology sector amid valuations that were considered high.<\/p>\n
Indonesia's GDP Increased to 5.17% in 2Q23<\/b><\/p>\n
The GDP report for the second quarter of 2023 shows stronger growth momentum compared to the previous quarter. The GDP growth rate increased to 5.17% on an annual basis (YoY), surpassing expectations and the previous quarter's 5% and 5.04%, respectively. Personal consumption experienced a significant increase at 5.23% YoY, higher than the previous quarter at 4.54%. Eid celebrations contributed to this increase. The rise in personal consumption was driven by increased spending on clothing, education, health care, and recreational activities. Government consumption also experienced significant growth, reaching 10.6% YoY, compared to the previous quarter at 3.45%, driven by fiscal spending. Investment growth experienced growth of 4.6% YoY, driven by infrastructure development such as roads and irrigation. In line with Bank Indonesia's policy which emphasizes the growth and stability of the Rupiah exchange rate, market players still see BI maintaining interest rates at 5.75% until the end of this year.<\/p>\n
July Foreign Exchange Reserves Rise to $137.7 billion<\/b><\/p>\n
Foreign Exchange Reserves for July increased for the first time in four months, reaching $137.7 billion compared to $137.5 billion in June. This amount is equivalent to six months of imports and foreign currency debt payments. However, this increase was largely due to the aggressive use of foreign exchange swaps (FX swaps). Utilization of FX swaps in July reached $3.22 billion, marking the highest level of usage since 2020. It is important to note that inflow through FX swaps indicates potential outflow from FX swaps in the future.<\/p>\n
Key Takeaways<\/b><\/p>\n
The United States stock market, the S&P 500, closed down by -0.31% throughout last week's trading. The inflation report showed that the consumer price index (CPI) rose slightly to 3.2%, compared to 3% in June. However, the overall picture shows a slowdown in inflation. According to RSM US LLP economist, Joe Brusuelas, this inflation figure supports expectations of a temporary suspension of the Fed's interest rates.<\/p>\n
The GDP report for the second quarter of 2023 shows stronger growth momentum compared to the previous quarter. The GDP growth rate increased to 5.17% on an annual basis (YoY), surpassing expectations and the previous quarter's 5% and 5.04%, respectively. Market players still see BI maintaining interest rates at 5.75% until the end of this year.<\/p>\n
Foreign Exchange Reserves for July increased for the first time in four months, reaching $137.7 billion compared to $137.5 billion in June. This amount is equivalent to six months of imports and foreign currency debt payments.<\/p>\n<\/div><\/div><\/div><\/div><\/div>
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<\/span><\/div><\/div><\/div><\/div><\/div>ANALYSTS CERTIFICATION<\/b><\/p>\n
The views expressed in this research report accurately reflect the analysts\u2019 personal views about any and all of the subject securities or issuers; and no part of the research analyst’s compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in the report.<\/span><\/p>\n \u00a0<\/b><\/p>\n DISCLAIMERS<\/b><\/p>\n This research is based on information obtained from sources believed to be reliable, but we do not make any representation or warranty nor accept any responsibility or liability as to its accuracy, completeness or correctness. Opinions expressed are subject to change without notice. Contents in this research is intended to be used and must be used for informational purposes only. It is very important to do your own analysis before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on our report and wish to rely upon, whether for the pur-pose of making an investment decision or otherwise. Any recommendations contained in this document does not have regard to the specific investment objectives, financial situation and the particular needs of any specific addressee. This document is not and should not be construed as an offer or a solicitation of an offer to purchase or subscribe or sell any securities. PT. Surya Timur Alam Raya or its affiliates may seek or will seek investment or other business relationships with entities in this report.<\/span><\/p>\n<\/div><\/div><\/div><\/div><\/div><\/p>","protected":false},"excerpt":{"rendered":"","protected":false},"author":3,"featured_media":4173,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-3523","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-market-update"],"acf":[],"yoast_head":"\n