Research

IHSG: Fewer Rate Cuts, Higher Inflation, Stronger USD. Happy Holidays

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Algo Research Team


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Key Summary:


  • A hawkish interest rate cut from the Fed
  • Financial markets rattled by selloffs
  • 2025 inflationary outlook is confirmed

Ho, ho, ho. Santa Jerome Powell has given you an early Christmas and New Year's present.


The Fed has delivered a 25bps interest rate cut, bringing the fed funds rate to 4.25-4.5%. However, they indicated a more hawkish outlook in 2025, expecting only two 25bps cuts to 3.75-4.0%.


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