The Deposit Insurance Corporation (LPS) has raised its guaranteed interest rate for rupiah deposits by 50 basis points (bps) following a hike in the central bankâs rates
he Deposit Insurance Corporation (LPS) has raised its guaranteed interest rate for rupiah deposits by 50 basis points (bps) following a hike in the central bank's rates.
In a statement issued on Wednesday, it said it had increased the guaranteed rate for rupiah deposits to 6.25 percent for commercial banks and 8.75 percent for secondary banks (BPR). As for US dollar deposits, the guaranteed rate remains unchanged at 1.25 percent.
The increase in LPS rates comes just two weeks after Bank Indonesia (BI) boosted its benchmark interest rate and deposit facility Fasbi rate by 50 bps to 6.5 percent and 4.75 percent, respectively.
Besides the BI and Fasbi rates, the new LPS rupiah rates are also driven by the higher Jakarta interbank offered rate (JIBOR) and time deposits rates offered by banks recently, LPS risk management director Salusra Satria said.
'In July, the one-month JIBOR recorded its highest, up 77 bps to 5.75 percent,' he said. The new LPS rates are valid until Sept. 14.
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