BRI Boss Predicts That RI Will Only Enter The Era Of Low Interest Rates Until The End Of The Second Quarter Of 2024

President Director of BRI Sunarso (Photo: Antara)

JAKARTA - PT Bank Rakyat Indonesia Tbk (BRI) predicts that the era of high interest rates will only end after the second quarter of 2024. Just so you know, so far Indonesia and the world are facing the phenomenon of high interest rates known as higher for longer.

"How long will it last? We hope not to be too long. And it is predicted that by the end of the second quarter of 2024 we hope that the Fed rate will decrease and then be balanced with a decrease in the BI 7-Day Repo Rate. That is our hope," said the President Director of BRI, Sunarso at a press conference, Wednesday, January 31.

Sunarso said, throughout the first semester of 2024, high interest rate conditions will still pose challenges to the liquidity conditions of Indonesian banking.

"First half 2024 we are still talking about liquidity that is still challenging and interest rates are still high. But after 1 semester, we hope to start entering the era of low interest rates," continued Sunarso.

He also ensured that BRI continued to open opportunities for lower interest rates, both loans and deposits, but still considered various factors such as cost of funds, competition and economic conditions.

Meanwhile, in terms of BRI's cost of fund in 2024, it is predicted that it will continue to increase along with the bench mark rate of the money market and tight liquidity in the previous period.

"However, we still manage this cost of fund well. We consistently implement a just right liquidity strategy, maintain liquidity at an optimal level, not excess liquidity because liquidity is again expensive but there is no lack of liquidity to continue to push for growth, especially credit growth," concluded Sunarso.