Bearish sentiment is rising in Asia mmf, weakening expectations of a Fed rate cut and exacerbating the strength of the US dollar.
Due to the expected weakening of the Fed's interest rate cut, the strengthening of the US dollar has made high-risk assets in Asia less attractive.
Citigroup: Bank Indonesia paused its dovish stance yesterday, with a possibility of rate cut in December.
October 17th, Gravitas reported that Citigroup economist Helmi Arman stated in a research report that the Indonesian central bank took a dovish pause at Wednesday's monetary policy meeting, but the window for rate cuts may reopen in December. Arman pointed out that the Indonesian central bank emphasized the increased uncertainty in the global financial markets, and the governor expressed concerns about the recent rise in U.S. Treasury yields and the USD. However, Citigroup stated that the Indonesian central bank's inclination still seems to be dovish. Citigroup expects that by the third quarter of 2025, the central bank may accumulate a total rate cut of 100 basis points. The economist added
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