KONTAN.CO.ID - Banks group with the big assets should cut their lending rates to follow the centra bank which has slashed its benchmark interest rate since end of 2015. The Central Bank has cut its "7-Day Reverse Repo Rate" by around 175 basis points since the end of 2015. "The time when benchmark interest rate was cut, banks immediately cut their interest rate on deposit, but they drag their feet in reducing their lending rate," Sarmuji from the Commission V of the House of Representatives said on Wednesday (30/8). Sarmuji accused the banking industry of often acting unfairly and not proportionally. "When the benchmark interest rate rose they are quick to follow with an increase in their lending rates but slow in raising the interest rate on deposits.
Banks urged to cut lending rates
KONTAN.CO.ID - Banks group with the big assets should cut their lending rates to follow the centra bank which has slashed its benchmark interest rate since end of 2015. The Central Bank has cut its "7-Day Reverse Repo Rate" by around 175 basis points since the end of 2015. "The time when benchmark interest rate was cut, banks immediately cut their interest rate on deposit, but they drag their feet in reducing their lending rate," Sarmuji from the Commission V of the House of Representatives said on Wednesday (30/8). Sarmuji accused the banking industry of often acting unfairly and not proportionally. "When the benchmark interest rate rose they are quick to follow with an increase in their lending rates but slow in raising the interest rate on deposits.
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