JCI Climbs 0.33% Ahead of Bank Indonesia Rate Decision
The JCI opened at 6,297.95 as investors awaited Bank Indonesia's rate decision and assessed global market and geopolitical developments.
The Indonesia Stock Exchange Composite Index (JCI) climbed 0.33% ahead of Bank Indonesia's (BI) monetary policy meeting, as investors took a wait-and-see approach. The JCI opened 20.91 points, or 0.33 percent, higher at 6,297.95, while the LQ45 index, which tracks 45 leading stocks, rose 1.56 points, or 0.25 percent, to 627.17. Investors are awaiting BI's decision on the bank's benchmark interest rate, with the central bank widely expected to keep it at 5.75 percent.
The Federal Reserve's recent rate hike has narrowed the spread between the BI Rate and the federal funds rate, but it remains wider than the average spread over the past three years. BI is expected to raise its benchmark rate only if the rupiah continues to weaken or inflation rises above the central bank's target.
Brief written by urgent.news from Tempo.co English's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
