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Tuesday, June 4, 2013
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BI: Increase in Interest Rates Depending Bank Liquidity

12:30 AM
Indobusiness - Bank Indonesia rate of interest rate hikes by banks in response to inflation is a result of rise in fuel prices, depending on the liquidity of each bank.

"Actually, only a few banks so. That's more related to the liquidity of the bank concerned," said Deputy Governor Perry Warjiyo on the sidelines of the inauguration of the new central bank governor in the Office of the Supreme Court, Jakarta, Friday (05/24/2013 ).

Perry said, there a number of banks that have limited liquidity. "So they (the banks unlimited liquidity) raised interest rates to compete for funds," he said.
   
According to Perry, it is not a common symptom that is not a problem. However, hopes banks will respond if it is no certainty of rising inflation due to the fuel policy.

"Should we expect they will respond later if there is an increase in inflation," he said.

Current policy issues subsidized fuel price increases being discussed in the House of Representatives Budget Committee.

"Kan its fuel policy issue it is still being discussed by the government and the Parliament. So it's something that really does not need to happen," said Perry.

Subsidized fuel price hike itself is likely to boost inflation. Banks also have to anticipate it by raising interest savings / deposits as did Bank BCA, which raised the deposit rate of 1.25 percent.

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