The European Offsets Jokowi’s Luck
Patience is the Earth. In financial markets, this verse from the poem Paman Doblang by the late WS Rendra can be altered to ‘patience is fortune’. Patience comes from the Federal Reserve. Fortune comes to emerging markets, Indonesia included.
Last Wednesday on March 20, the Fed reaffirmed its policy line: more patience with regards to raising interest. The US economy is showing signs of a slowdown, which explains the Fed dovishness in setting the rates.
Thus throughout 2019, if there are no significant and unexpected shocks, The Fed’s benchmark interest rate will not go any higher. The Fed’s patience is making investment funds flow back into various emerging markets in se...