Minister: The Fed interest rate increase has been anticipated
17 December 2015 15:50 WIB
TEMPO.CO, Jakarta - National Development Planning Minister Sofyan Djalil said that there is nothing new about the Federal Reserve interest rate increase. "Speaking in technical term, everything have been pressed-in by market players," Sofyan said during a seminar held by Tempo Impresario at the UOB Plaza on Thursday, December 17, 2015.
Sofyan explained that the Fed's interest increase provided a sense of certainty to the market. "Its even better. No one will ever speculate on the issue," Sofyan said, adding that the increase had been long anticipated.
Sofyan asserted that the increase will present more favorable economic conditions for the government. However, Sofyan stated that the problem would be when the Fed will apply another increase on its interest rate, because it will force market players to speculate.
The speculation, as Sofyan explained would affect the Rupiah exchange rate and stock market performance. The speculations however, will end after the Fed decided to take action.
The Fed had recently increased its interest rate by 25 base points to a level of 0.50 percent from the previous 0.25 percent. The increase signaled that the United States economy is improving.
ALI HIDAYAT