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BNI to Cut Lending Rate in April

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25 March 2016 11:30 WIB

TEMPO.CO, JakartaState-owned Bank Negara Indonesia (BNI) plans to lower its lending rate on small-scale credits worth up to Rp5 billion in April.

"We will cut the lending rate to less than 10 percent for small-scale credits amounting to up to Rp5 billion in April," BNI President Director, Ahmad Baiquni said on Thursday.

He predicted that the market deposit rate set by the Deposit Insurance Institute (LPS) will decline until the end of this year, along with a decline in Bank Indonesias benchmark interest rate known as BI Rate.

"I predict it will decline until the end of this year as the BI rate has been reduced," he said.

Asked how much the BI Rate will be lowered again until the end of this year, he said it will be cut by up to 25 basis points.

Bank Indonesia (BI), the central bank, had decided at the meeting of its board of governors on Thursday (March 17) to cut its key interest rate for the third time this year by 25 basis points to 6.75 percent.

"The deposit facility rate is set at 4.75 percent and lending facility rate at 7.25 percent effective on March 18," Executive Director of Bank Indonesias Communication Department, Tirta Segara said.

ANTARA




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