TEMPO.CO, Jakarta - The Deposit Insurance Corporation (LPS) said there is a high possibility to lower bank deposit interest rates following the guarantee interest rate cuts by 50 basis points.
LPS board of commissioners' chairman Halim Alamsyah said another factor for that possibility is Bank Indonesia's (BI) decision to cut its benchmark interest rate four times, each by 25 bps, since the beginning of the year.
"I think [bank deposit rates] will still go down, but the figure might not be as big as the cut in the beginning of this year," Halim said in Jakarta, Tuesday, September 14, 2016,.
On September 9, the LPS Board of Commissioners decided to cut the LPS Rate by 50 bps for savings denominated in rupiah.
The LPS currently applies 6.25-percent guarantee interest rate for rupiah deposits in commercial banks. Meanwhile, deposits in people's credit banks (BPR) get an interest rate of 8.75 percent.
For forex savings in commercial banks, the guarantee rate kept is 0.75 percent.
These rates are valid for a period of six months from September 15, 2016 until January 15, 2017.
ANTARA
