Fed Poised to Ease Rates, Inflation Concerns Linger.

The Federal Reserve has scheduled an FOMC meeting for November, during which the appropriate pace of interest rate cuts will be discussed. A number of economic indicators will be published this week and will be taken into account by policymakers. A key report scheduled for release is the employment report, which is anticipated to reflect a more modest increase in payrolls due to the impact of hurricanes and work stoppages. Notwithstanding these transient considerations, economists anticipate that the Federal Reserve will reduce interest rates by a quarter percentage point at the forthcoming meeting. Additionally, a separate report is anticipated to indicate an increase in the underlying inflation gauge favored by the central bank. While officials believe that price pressures are generally easing, this data may impact their decision-making process.

Menanti Data Ekonomi AS jelang Pertemuan FOMC The Fed Pekan Depan

Oil Prices Retreat on Reduced Middle East Tensions.

Following Israel's retaliatory strikes on Iran, oil prices saw a notable decline. This was due to the fact that the attacks did not target Tehran's oil and nuclear facilities or disrupt energy supplies. This resulted in a reduction in tensions in the Middle East. On Monday, Brent and West Texas Intermediate (WTI) crude oil futures reached their lowest levels since October 1. Brent oil prices for the December 2024 delivery contract declined by 4.4% to $72.70 per barrel, while WTI oil prices decreased by 4.6% to $68.51 per barrel. Last week, benchmark prices saw a 4% increase due to market uncertainty surrounding the extent of Israel's response and the upcoming US elections. Israeli jets conducted three waves of pre-dawn strikes on missile factories and other locations in the vicinity of Tehran and western Iran. However, they did not target oil infrastructure. The limited scope of the attack has led to a reduction in the geopolitical risk premium in oil prices.

Harga Minyak Anjlok Lebih dari 4%, WTI Tergelincir ke US$ 68,51 di Pagi Ini (28/10)

China's Central Bank Introduces New Liquidity Tool.

China's central bank, the People's Bank of China (PBOC), announced new measures to manage liquidity and stimulate the economy. The PBOC will conduct reverse repurchase agreements with primary dealers or outright reverse repurchase agreements every month for up to one year. The move is aimed at maintaining a reasonable level of liquidity in the banking system and expanding the bank's monetary policy toolkit. Reverse repurchase agreements involve the purchase of securities with the agreement to sell them back at a later date and will include government bonds, local government debt and corporate debt. The new tool is expected to complement existing tools such as seven-day reverse repo, one-year medium-term lending facility (MLF), government bond trading and reserve requirement ratio adjustment. The PBOC is likely to conduct 3 or 6-month reverse repo operations to address a significant maturity wall in the medium-term lending facilities.

Perkuat Likuiditas, Bank Sentral China PBOC Rilis Kebijakan Moneter Baru