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Lower credit rates a pipe dream for consumers this year
“We will push for the reduction of lending rates,” said Wimboh Santoso, the chairman of the Financial Services Authority (OJK).
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Coordinating Economic Minister Darmin Nasution (center) chats with Deputy Energy and Mineral Resources Minister Arcandra Tahar (left) and Financial Services Authority (OJK) chairman Wimboh Santoso. (JP/Grace D. Amianti)
B
ank customers who rely on bank credits to buy houses or vehicles may need to stretch their patience as they apparently will not see lower loan rates this year.
It will take more than six months before banks trim down lending rates, a move aimed at reviving the appetite for investment in the country, the Financial Services Authority (OJK) has predicted.
Following the central bank’s move to cut its benchmark rate last month, many banks will likely push down time deposit rates and they will take more time to lower lending rates for money borrowers, the banking authority said.
Bank Indonesia (BI) unexpectedly slashed down its seven-day reverse repurchase (repo) rate by 25 basis points (bps) to 4.5 percent for the first time since last October to help boost tepid economic growth.
“We will push for the reduction of lending rates. We will monitor the transmission [effect],” OJK chairman Wimboh Santoso said while opening a media workshop on Friday.
Read also: OJK shuts down 44 scam investment agencies
The change in time deposit rates can be seen in one, three or six months depending on its specified maturity period.
