Darmin; Banks Not Automatically Raise Credit Interest

INDUSTRY.co.id - Jakarta - Coordinating Minister for Economic Affairs, Darmin Nasution, said that the 7-day Reverse Repo Rate increase by 25 basis points by Bank Indonesia does not automatically increase the interest rate of bank credit.

"It does not automatically increase the credit interest rate, even if it is not proportional, up 0.25 (percent), yes it does not have to rise 0.25," said Darmin met at the Coordinating Ministry for Economic Affairs, Jakarta, Friday (18/05/2018)

The former governor of Bank Indonesia also stated that other countries are also in the stage of raising interest rates.

"In the beginning can be as usual, but if later on its development wherever the rose interest will be adjusted," said Darmin.

Meanwhile, to safeguard the impact of interest rates on economic growth, the government encourages this through simplification of licenses and fiscal incentives.

"We have prepared it, and it will only be launched in a few days, meaning that the government has prepared itself," Darmin said.

Previously, Bank Indonesia raised its 7-Day Reverse Repo Rate "by 25 basis points to 4.5 percent at the Board of Governors Meeting, May 16-17, 2018 to reduce the impact of global economic uncertainty which has undermined the rupiah exchange rate in several last times.