VIVAnews - The central bank is convinced that banking would lower their interest rate after the BI rate cut although BI cannot force banks to reduce rates since they could predict their own risks.
"After the rate is cut down by 275 basis points, [the cut] should affect the credit interest rate," said BI senior deputy governor Miranda S. Goeltom in Jakarta on Friday, July 3.
She also expected that the credit growth would go in accordance with the increasing demand, considering the present increasing demand on export goods.
Even though BI will not force banking to disburse credit, the central bank will continue approaching banking to convince them of a better inflation rate in the future.
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Translated by: Ariyantri E. Tarman
