The Banks are Slowly to Execute Monetary Ease of Central Bank Concerning Credit Boost

The central bank of indonesia in last eight months has some further monetary easing. The last week bank central of indonesia (BI) lowered its benchmark interest rate (BI rate) by 25 basis points, from 5.25 to 5 percent.

The objective of rate lowering is to boost creadit growth so as to bring positive impact on economy growht in macro term.

Nevetheless, bank central policy is not well supported by the banks. They are slowly to decrease the credit rates thus the objective are sluggish to attain.

The banks counts on the reason that banks have to do internal adjustment of liquidity. They still have to fix them and just for this year the banks have to pay off the foreign currency debt.

On the other hand, the decrease of rate is faster than lending rates which is 100 bps or 6.94% from january to augustus 2016, said the representative of BI yofa affandi. Meanwhile the lending rates is slower 52bps or 12.31 percent per august 2016.