JAKARTA. The periods of the declining interest rates in 2016 are unlikely to repeat in the next year. In fact, according to the Deposit Insurance Agency (LPS), some potential risks may trigger the increase in insured interest rate or LPS rate in 2017. LPS assess the savings rate could raise in case of capital flow reversals to the United States (US) after The Federal Reserve (Fed) raised the benchmark interest rate by 25 bps to 0.50% -0.75%. In addition, there are also the risks of fund flow reversals (repatriation) of the US corporate profits, as well as the liquidity squeeze of small banks, which had earlier raised deposit rates. Nonetheless, the important thing is “The insured interest rate in 2017 will be parallel with the deposits rate movement,” said Chairman of Commissioner Board of Deposit Insurance Agency (LPS) Halim Alamsyah, Thursday (29/12).
Insured interest rate may hike
JAKARTA. The periods of the declining interest rates in 2016 are unlikely to repeat in the next year. In fact, according to the Deposit Insurance Agency (LPS), some potential risks may trigger the increase in insured interest rate or LPS rate in 2017. LPS assess the savings rate could raise in case of capital flow reversals to the United States (US) after The Federal Reserve (Fed) raised the benchmark interest rate by 25 bps to 0.50% -0.75%. In addition, there are also the risks of fund flow reversals (repatriation) of the US corporate profits, as well as the liquidity squeeze of small banks, which had earlier raised deposit rates. Nonetheless, the important thing is “The insured interest rate in 2017 will be parallel with the deposits rate movement,” said Chairman of Commissioner Board of Deposit Insurance Agency (LPS) Halim Alamsyah, Thursday (29/12).