Indonesian Bonds Should Remain Very Attractive, Says Continuum Economics’s Chanana

The video discusses Indonesia's recent 25 basis point rate cut, marking the start of an easing cycle. Charu, a top forecaster, analyzes the country's monetary policy, highlighting its prudence and potential for further rate cuts. The discussion covers global liquidity easing, domestic resilience, and external risks like trade wars. Indonesia's attractive yield spread over U.S. Treasury is noted, alongside the re-election of the Jacobi government and its focus on infrastructure reforms, ensuring continued economic appeal.

What was the recent monetary policy action taken by Indonesia?

• A 100 basis point rate cut

• No change in rates

• A 25 basis point rate cut

• A 50 basis point rate hike

Which factor is NOT mentioned as influencing Indonesia's future rate cuts?

• The tone of the Federal Reserve

• Domestic economic data

• The price of oil

• Global liquidity conditions

What external risk is highlighted as a concern for Indonesia's economy?

• Natural disasters

• Political instability

• Trade wars

• Rising inflation

What makes Indonesian bonds attractive despite the rate cut?

• High inflation rates

• Strong domestic currency

• Low foreign investment

• Substantial yield spread over U.S. Treasury

What is a key focus of the Jacobi government's second term?

• Healthcare reforms

• Education policies

• Tax reduction

• Infrastructure development