As of July, BCA has already increased its interest rate by 0.75 percentage points following BI’s decision to raise its seven-day reverse repo rate by 50 basis points to stabilize the rupiah.

Currently, BCA’s rupiah time deposit interest rate ranges from 4.75 percent to 5.25 percent, while the dollar time deposit interest ranges from 0.95 percent to 1.25 percent depending on the maturity.

President director Jahja Setiaatmadja said on Thursday that the increase could also boost the bank’s time deposit funds, which had decreased by 7.6 percent year-on-year in the first half of this year to Rp 134.3 trillion (US$9.3 billion) due to last year’s low-interest rate, which made customers less interested in opening time deposit accounts.

“However [since BI raised its rate], we have increased our time deposit rate three times in April and June by 0.25 [percentage points] each,” he said, as quoted by kompas.com. “We hope that this can help increase […] time deposit funds.”

Meanwhile, BCA booked 8.4 percent year-on-year increase in profit in the first half of this year to Rp 11.4 trillion.

The bank also booked a 7.6 percent year-on-year increase in operational revenue, which consists of interest and other operating income, to Rp 29.5 trillion in the first half of this year from Rp 27.4 trillion. (ris)

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