Bank Indonesia, Government Coordination 'Encouraging,' Nomura Says

Bank Indonesia, Government Coordination 'Encouraging,' Nomura Says

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Interactive Video

Business

University

Hard

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The video discusses the challenges faced by Indonesia due to asset sell-offs and the high bond yield, which is at a 20-month high. It highlights the need for policy coordination between Bank Indonesia and the Ministry of Finance to manage currency pressures and support growth. The domestic economy shows signs of recovery, but external factors, especially from Turkey, remain dominant. Bank Indonesia is intervening in the FX market to support the currency and is considering future rate hikes, possibly aligning with the Fed's schedule.

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2 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

What factors are contributing to the capital inflows in Indonesia as mentioned in the text?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

What is the significance of the timing of the next meeting of Bank Indonesia in relation to the Fed's schedule?

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