LPS increases the guaranteed interest rate for the period of July 2018

JAKARTA, KOMPAS.com – Meeting of the Board of Commissioners (RDK) The Deposit Insurance Company (LPS) has decided to increase the interest rate of guarantee for the Rupiah and foreign currency deposits in commercial banks and rupee deposits at Rural Banks (BPR) for the period from 18 July 2018 to 17 September 2018 amounted to 25 bps respectively.

Thus, if the underlying collateral rate for commercial banks is 6.25% for rupees and 1.50% for foreign currencies. While the interest rate of BPR at 8.75 percent.

The chairman of the LPS Commissioner's Council, Halim Alamsyah, said that the increase in guaranteed interest rates was due to growth in savings rates that began to gradually increase.

"We see the progression of savings rates Halim explained to media teams that savings interest rates could continue to rise in response to BI's monetary policy [19659005]] Changes in the subscription rate of LPS off schedule should be, in January, May, and September is also due to the condition of the financial markets that continue to adjust global economic conditions.

Halim has stated that the liquidity situation in the second half of the year was slightly increased due to the movement of Fed Fund Rate expectations, the strengthening of the US dollar and the high global volatility, and the rise in BI interest rates. rose by 100 basis points in June 2018.

"Banks will react by increasing the interest rate of funds, including interest on loans," said Halim

.Based on data from 62 banks that became LPS referrals, deposit interest rates rose 18 basis points to 5.31 percent. Meanwhile, the average currency interest rate rose 18 basis points to 0.78%.