The survey said the decline followed a cut in the central bank`s benchmark interest rate of 7-Day Reverse Repo Rate which was 200 basis points lower by October, 2017 from at the end of 2015. Currently the 7-Day Reverse Repo Rate is 4.25 percent.
"The interest rates on time deposits of 3, 6, and 12 months were 6.11 percent, 6.61 percent, and 6.8 percent, down from 6.17 percent, 6.63 percent and 6.82 percent respectively," the central bank wrote in its report titled Analysis on Money in Circulation.
The interest rates on deposits of 1 and 12 months rose from 5.8 percent and 6.72 percent to 5.81 percent and 6.73 percent in December 2017.
Meanwhile, outstanding credits of banks by the end of 2017 totaled Rp4,763.2 trillion or up 8.2 percent year-on-year. The credits, however, did not include financial instruments like Debt Securities, Banker`s Acceptances, and Repo claims, which are considered the same as loans.
Credit given by foreign based bank offices and credits given to the Central Government and non Indonesians are not included in the outstanding credits of commercial banks.
The money in circulation slowed in growth in December 2017 to Rp5,418.5 trillion or growing only 8.3 percent year-on-year lower than a growth of 9.3 percent yoy in November that year.
(AS/b003/B003)
(T.SYS/B/H-ASG/B003)
Reporter: antara
Editor: Heru Purwanto
Copyright © ANTARA 2018
