Bank Indonesia governor says the central bank will continue implementing incentive measures to attract capital inflows.

Galaxy Securities research: The Fed hiked 25bp to 3.75%–4.00% on Sept. 16, the first increase since July 2023, lifting the systemic center of the risk-free rate beyond the policy rate. Higher discount rates compress equity multiples, hitting long-duration, high-valuation growth names most. The AI narrative remains robust, but pricing is shifting from long-term visions to near-term delivery and earnings verification. On the first trading day after the hike, compute-related sectors—storage, CPUs, foundries and optical interconnect—generally outperformed, driven by strong current profits and short payback periods that make them less rate-sensitive. Divergence continues: compute hardware with validated cash flows and earnings (advanced process nodes, memory, optical interconnect, equipment and materials) are benefiting as downside is largely priced in, while names reliant on distant narratives without earnings support are being de-rated. AI is entering a rational verification phase.

Against a backdrop of industry-wide falling deposit rates, smaller banks show divergent deposit pricing: some have raised deposit rates while others have cut mid‑to‑long‑term fixed deposits, with isolated term‑rate inversions and inconsistent tenor adjustments within the same banks. Zeng Gang, head of Tianfu Liyan Financial Research Institute, says these are largely stage‑specific, structural liability‑management moves and do not indicate a broad deposit‑rate hiking cycle. He expects deposit rates overall are most likely to remain on a steady‑to‑lower path, with greater cross‑institution and cross‑tenor dispersion; competition will shift from pure rate battles toward improving client service, expanding settlement balances, optimizing product mix and lowering aggregate funding costs.