ASEAN KEY DESTINATIONS
BNI predicts RI rate stable in 2014
State-owned Bank Negara Indonesia (BNI) president director Gatot M.Suwondo predicts that Bank Indonesia’s (BI) benchmark interest rate (BI rate) will remain relatively stable at the current level of 7.5 percent throughout 2014.
“Even if it declines, it will not drop below 7 percent,” he said in Jakarta on Wednesday as quoted by Antara.
Gatot said BNI had anticipated both the tight monetary policy currently conducted by BI and the impacts of the US Federal Reserve’s (Fed) monetary stimulus tapering policy.
“For loans, we are targeting to increase by in between 14 and 17 percent,” said Gatot.
It is said that the business banking credit is targeted to grow by around 15-18 percent while the consumer banking credit growth rate is set at 14-15 percent.
Meanwhile, for the third-party funds (DPK), Gatot is targeting a growth rate at between 13 and 14 percent in 2014 in the midst of tight liquidity condition in the country.
“Therefore, the loan-to-deposit ratio is targeted to stand in between 85 and 87 percent this year,” said Gatot.
As reported earlier, BI is continuing its tight monetary policy to direct the inflation rate to stand at 3.5 to 5.5 percent in 2014 and between 3 to 5 percent next year by, among others things, maintaining its benchmark interest rate at 7.5 percent during the central bank’s board of governors meeting on Feb.13.
In the period of May-December 2013, BI increased the interest rate by 175 basis points from 5.75 percent to 7.5 percent.
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