BI would always maintain the liquidity supply in such a way that banks would not compete to raise their deposit rates to obtain funds, he said here on Friday.
"We have stated that BI will ensure that liquidity supply is more than enough. It is not just enough but more than enough," he said.
If a bank raised its fund interest rate, normally it would increase its lending rate to reduce fund costs, he said.
At the start of the holy month of Ramadan in the middle of May 2018, BI admitted that bank liquidity had become tight due to massive withdrawal of funds ahead of the post-fasting month festivities or Lebaran. But the massive withdrawal of funds would be temporary, he said.
"Given the liquidity supply, banks have no reasons to increase interest rates," he said.
According to data from the Deposit Insurance Agency (LPS), the amount of funds placed in giro BI instruments increased Rp556 trillion. But the number continued to decline ? it was Rp380 trillion as of April 27, 2018.
Reported by Dndra Arief Pribadi
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Reporter: antara
Editor: Heru Purwanto
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