Bank 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 ...
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