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View all search resultsCentral bank believes credit growth will reach 7-9 percent
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The logo of Bank Indonesia on the main gate of the central bank's headquarters in Jakarta. (Antara/File)
B
ank Indonesia has expressed its optimism that credit growth will reach between 7 - 9 percent as targeted, despite experiencing a slowdown in August.
Although credit growth in August stood at only 6.8 percent year-on-year (yoy), lower than the previous month's growth of 7.7 percent yoy, loan growth will pick up in the fourth quarter, said BI economic and monetary policy executive director Juda Agung.
"It's seasonal in November to December. Between 7 and 9 percent growth is still achievable," Juda Agung said in Jakarta on Thursday.
The central bank has once again cut its BI seven-day repo rate by 25 basis points (bps), from 5 percent to 4.75 percent at the October board of governors meeting, following the previous 25 bps cut last month to support the monetary easing policy and boost lending growth.
BI executive director of communications Tirta Segara added that transmission of monetary easing policy through interest rates would continue and was reflected in the continuing decline in deposit and lending rates.
"However, transmission through the credit channel is not optimal, credit growth is still limited in line with weak demand, including demand from corporate investments," he added. (bbn)
