Analysts: BI Rate Increase has been Anticipated
14 June 2013 15:43 WIB
TEMPO.CO, Jakarta - Thendra Crisnanda, an analyst at BNI Securities, said that a six percent increase of Bank Indonesia Rate will not affect the stock market significantly. He believed that a 25 base points increase is normally anticipated, given that only a 100 base points increase that will generate serious effetcs.
However, he suggested that investors are more likely to look for confirmation upon the long-awaited fuel price increase. Nonetheless, in the long-term, BI rate increase will certainly affect property shares and credit banking.
Nurul Eti Nurbaeti, Head of Treasury Research at Bank BNI, said that the market has relatively anticipated the BI rate increase, which is done to improve Rupiah exchange rate against US Dollar.
Ibrahim, an analyst at PT Harvest International Futures, also confirmed that Rupiah exchange rate is still awaitng for confirmation on fuel price increase to avoid budget and commerce deficiency. The uncertainty has forced the market to be cautious in responding to government's policy.
PDAT | M. AZHAR | MEGEL JEKSON