Even Though It Continues To Rise, BI Claims That The Banking Interest Tribe Is Still Conducive To Supporting Economic Recovery

Illustration (Photo: Doc. Antara)

JAKARTA Bank Indonesia (BI) stated that the condition of the banking interest rate, which is currently in an increasing trend, is still considered quite conducive in supporting economic recovery.

This was confirmed by the Governor of BI Perry Warjiyo when giving a press statement to the media crew after holding a Board of Governors Meeting (RDG).

In his explanation, Perry said that in the money market, the IndONIA interest rate on December 21, 2022 rose 200 basis points (bps) compared to the end of July 2022 to 4.80 percent.

"This is in line with the increase in BI7DRR and the strengthening of Bank Indonesia's monetary operations strategy," he said online on Thursday, December 22.

According to Perry, the yield of short-term Government Securities (SBN) increased by 59 bps, while the yield of long-term SBN tenor remained under control.

"The increase in banking interest rates, both interest rates and credit interest rates are limited," he added.

Meanwhile, the interest rate for one month deposit in November 2022 was recorded at 3.72 percent. That level rose 83 bps compared to July 2022.

Then, for the November 2022 loan interest rate, it was recorded at 9.11 percent or an increase of 17 bps compared to the level of July 2022.

The BI Governor said that the limited increase in banking interest rates was influenced by loose liquidity.

"In the future, Bank Indonesia will continue to encourage banks to form efficient, accommodating, and competitive lending rates that can support economic recovery," concluded Perry Warjiyo.