JAKARTA. The concern on the liquidity squeeze has been growing. This reflects on the data of BI (the Central Bank) that the banking deposits interest rate with more than six month tenor has increased by 1 bps-10 bps on month-on-month (mom) basis to 7.12%-7.4%. For an example, the deposits interest rate with six month tenor as of November 2016 stood at 7.12%, increased by 10 bps from the previous month. During the same period, the interest rate of deposits with 24 month tenor increased by 5 bps to 7.3%. Deposit Insurance Agency (LPS) predicts, the deposits interest rate in 2017 will be increasing gradually. Head of Economic Risk and Financial System Group of LPS Dody Arifianto said that the increase in deposits interest rate was driven by two factors.
Deposits rate has increased since the end of 2016
JAKARTA. The concern on the liquidity squeeze has been growing. This reflects on the data of BI (the Central Bank) that the banking deposits interest rate with more than six month tenor has increased by 1 bps-10 bps on month-on-month (mom) basis to 7.12%-7.4%. For an example, the deposits interest rate with six month tenor as of November 2016 stood at 7.12%, increased by 10 bps from the previous month. During the same period, the interest rate of deposits with 24 month tenor increased by 5 bps to 7.3%. Deposit Insurance Agency (LPS) predicts, the deposits interest rate in 2017 will be increasing gradually. Head of Economic Risk and Financial System Group of LPS Dody Arifianto said that the increase in deposits interest rate was driven by two factors.