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Pound Sterling to Indonesian Rupiah (GBP/IDR) Exchange Rate Forecast to Edge Lower after Bank Indonesia Refrain from Cutting Rates
Published: 19 May at 5 PM Tags: Pound Sterling, Currency Exchange, UK, Exchange Rates, Economy, Inflation,
The Pound Sterling to Indonesian Rupiah is currently trending in the region of 20465.9451.
The British Pound edged lower versus the majority of its most traded currency rivals on Tuesday. This was due to inflation falling into negative territory. April’s Consumer Price Index dropped to -0.1% on the year, the first time we have seen British deflation since 1960. Aiding the downtrend was a less-than-ideal result from the core inflation measure. Annual Core CPI failed to meet with the median market forecast 1.0% in April.
‘For now, it represents an obstruction to a BOE rate hike,’ said Alan Clarke, an economist at Scotiabank in London. ‘Enjoy it while it lasts because there is a good chance that inflation will be back in positive territory next month.’
However, Chancellor of the Exchequer George Osborne has spun the negative inflation into a positive for the UK, stating that the annual fall in prices was ‘good news for family budgets’ and said it should not be mistaken for ‘damaging deflation.’
‘Instead we should welcome the positive effects that lower food and energy prices bring for households at a time when wages are rising strongly, unemployment is falling and the economy is growing,’ he said in a statement. ‘Of course, we have to remain vigilant to deflationary risks and our system is well equipped to deal with them should they arise.’
The Indonesian Rupiah, meanwhile, softened versus many of its major competitors despite the fact that Bank Indonesia refrained from altering the cash rate. The declination can be attributed to the Bank stating that they will be loosening lending rules to support growth.
‘Monetary easing may prove to be counterproductive as it may cause the Rupiah to depreciate and thereby reduce domestic purchasing power,’ David Sumual, an economist at PT Bank Central Asia in Jakarta, said before the decision. Adjusting other policies like relaxing lending curbs may be appropriate ‘in a bid to give a sort of buttress to economic growth,’ he said.
In a statement from the central bank, officials said; ‘Bank Indonesia will also continue to strengthen coordination with the government not only in terms of controlling inflation and managing the current-account deficit, but also by accelerating fiscal stimulus to boost economic growth.’
The Pound Sterling to Indonesian Rupiah (GBP/IDR) exchange rate was trending within the range of 20299.6436 – 20648.2783.
The British Pound edged lower versus the majority of its most traded currency rivals on Tuesday. This was due to inflation falling into negative territory. April’s Consumer Price Index dropped to -0.1% on the year, the first time we have seen British deflation since 1960. Aiding the downtrend was a less-than-ideal result from the core inflation measure. Annual Core CPI failed to meet with the median market forecast 1.0% in April.
‘For now, it represents an obstruction to a BOE rate hike,’ said Alan Clarke, an economist at Scotiabank in London. ‘Enjoy it while it lasts because there is a good chance that inflation will be back in positive territory next month.’
However, Chancellor of the Exchequer George Osborne has spun the negative inflation into a positive for the UK, stating that the annual fall in prices was ‘good news for family budgets’ and said it should not be mistaken for ‘damaging deflation.’
‘Instead we should welcome the positive effects that lower food and energy prices bring for households at a time when wages are rising strongly, unemployment is falling and the economy is growing,’ he said in a statement. ‘Of course, we have to remain vigilant to deflationary risks and our system is well equipped to deal with them should they arise.’
The Indonesian Rupiah, meanwhile, softened versus many of its major competitors despite the fact that Bank Indonesia refrained from altering the cash rate. The declination can be attributed to the Bank stating that they will be loosening lending rules to support growth.
‘Monetary easing may prove to be counterproductive as it may cause the Rupiah to depreciate and thereby reduce domestic purchasing power,’ David Sumual, an economist at PT Bank Central Asia in Jakarta, said before the decision. Adjusting other policies like relaxing lending curbs may be appropriate ‘in a bid to give a sort of buttress to economic growth,’ he said.
In a statement from the central bank, officials said; ‘Bank Indonesia will also continue to strengthen coordination with the government not only in terms of controlling inflation and managing the current-account deficit, but also by accelerating fiscal stimulus to boost economic growth.’
The Pound Sterling to Indonesian Rupiah (GBP/IDR) exchange rate was trending within the range of 20299.6436 – 20648.2783.
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Source: moneytransfer.co.uk