TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

LPS raises rates for rupiah deposits

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 bank’s rates

The Jakarta Post
Fri, July 26, 2013

Share This Article

Change Size

LPS raises rates for rupiah deposits

T

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.

'€œIn 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.

{

Your Opinion Counts

Your thoughts matter - share your experiences, suggestions, and any issues you've encountered on The Jakarta Post. We're here to listen.

Enter at least 30 characters
0 / 30

Thank You

Thank you for sharing your thoughts. We appreciate your feedback.