JAKARTA. Slow but sure, the expectations to enjoy lower credit rate are fading away, as the bank’s credit rate has started increasing. Executive Director of Economic and Monetary Policy Department at BI (the Central Bank) Juda Agung said, the bank’s credit rate has increased by one bps during January 2017. This has terminated the trend of credit rate reduction by 79 bps in 2016. BI estimates that the banks have yet to significantly respond to the relaxation of monetary policy under the scheme of BI’s 7-days Reserve Repo Rate (7DRR). “BI is expecting that the banks will continue adjusting the interest rate,” Juda said, last weekend. The increase in credit rate in January 2017 was driven by the increase in the rate of deposits with the tenors of 1 and 24 months. In December 2016, the interest rate of the deposits with 1 and 24 months increased by 10 bps, from 6.36% and 7.36% in November 2016 to 6.46% and 7.38%, respectively.
Be ready, credit rate would rise, again
JAKARTA. Slow but sure, the expectations to enjoy lower credit rate are fading away, as the bank’s credit rate has started increasing. Executive Director of Economic and Monetary Policy Department at BI (the Central Bank) Juda Agung said, the bank’s credit rate has increased by one bps during January 2017. This has terminated the trend of credit rate reduction by 79 bps in 2016. BI estimates that the banks have yet to significantly respond to the relaxation of monetary policy under the scheme of BI’s 7-days Reserve Repo Rate (7DRR). “BI is expecting that the banks will continue adjusting the interest rate,” Juda said, last weekend. The increase in credit rate in January 2017 was driven by the increase in the rate of deposits with the tenors of 1 and 24 months. In December 2016, the interest rate of the deposits with 1 and 24 months increased by 10 bps, from 6.36% and 7.36% in November 2016 to 6.46% and 7.38%, respectively.