Flash News

Too much too soon?

While timing is slightly earlier than our expectation, the second rate cut (7-days reverse repo cut by 25 bps to 4.25%) is in line with our call. Further, we expect BI to pause on rate cuts this year, but shifting the focus on easing macro prudential rules (Loan-to-Value, etc) to support the growth. Next year, we still expect another rate cut as inflation 2018E may come down to 3.3-3.6%.

What are the rationale behind?

Impact to bond market

Impact to equity market