The Fed: Negative Rates are Unlicely and Undesible - And for Good Reason

11 May 2020

Research

Having surprised markets with extraordinary credit easing, the federal reserve was hoping for a queter period in which reduced financial volatility would be allowed for more of the heavy life to be shifted to other policymakers and markets. Insead, in a repeat of a to-family pattern, the market are asking for more. Forward-Looking Indicators have been flirting with the possibility of negative interest rates by the end of this year or the beginning of next year. This is happening Despite Repeated States by Fed Officials that Negative Rates are Unlicely and Undesible - And for Good Reason. (Bloomberg) Indonesia`s foreign exchange reserves at the end of April 2020 amounted to 127.9 billion us dollars, higher than the reserves at the end of march 2020 of 121.0 billion us dollars. The foreign exchange reserves are equivalent to 7.8 months of imports or 7.5 months of imports and service of external debt and are above the international adequacy standard of around 3 months of imports. (Bank Indonesia) Source: Danareksa Securities Debt Research