The Government and The House of Representatives Agreed on The RAPBN Macro Assumptions






The Government and the House of Representatives Commission XI agreed on the basic macroeconomic assumptions and development targets in the Macroeconomic Framework and Fiscal Policy Principles (KEM PPKF) RAPBN 2021. The basic assumptions include economic growth of 4.5-5.5 percent, the level inflation of 2-4 percent, the exchange rate of the rupiah against the US dollar in the range of IDR13,700-IDR14,900, and interest rates for 10-year SBN 6.29- 8.29 percent. The development targets include the open unemployment rate of 7.7-9.1 percent, poverty 9.2-9.7 percent, the gini ratio index of 0.377-0.379, and the human development index of 72.78-72.95. (Antaranews)

The Federal Reserve’s balance sheet is exploding, growing by about $3 trillion since mid-March and now totaling more than $7 trillion. It could conceivably exceed $10 trillion by yearend, as the central bank buys corporate bonds, municipal securities and makes loans to medium-sized businesses while purchasing $80 billion of Treasuries and $40 billion of agency mortgage-backed securities (MBS) each month. This would be more than double the peak that the Fed’s balance sheet reached after the 2008-09 financial crisis. (Bloomberg)

Source: Danareksa Sekuritas Debt Research

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