Indonesia Has Room to Cut Rates in 2H, Says Ashmore Asset Management’s Kumar

The video discusses the conditions necessary for a rate cut in Indonesia, focusing on the trade balance deficit and historical trends. It highlights the need for reforms in the oil, gas, and labor sectors to attract foreign direct investment (FDI). The impact of interest rate hikes, not driven by inflation but by sentiment and portfolio investments, is analyzed. The video also explores the potential for increased investment flows into emerging markets, particularly Indonesia, due to its high growth rate.

What impact do interest rate hikes have on monetary policy according to the text?

What factors are influencing portfolio investments to cover the current account deficit?