Reference rates rise again, Mayapada Bank still monitors market

JAKARTA, KOMPAS.com – The PT Bank's director, Mayapada Rudy Mulyono, said that the rise in the Bank of Indonesia's benchmark interest rate would affect bank interest. However, Rudy has not confirmed when Mayapada's deposit and credit rates will adjust.

"We will see competitors in the market, we are also watching prices," Rudy told Mayapada Tower 2 in Jakarta on Thursday (15.11.2018).

Rudy acknowledged that the interest margin would be eroded by the rise in the benchmark interest rate. As a result, Mayapada will encourage an increase in non-interest income (basic income) One of them comes from the product service transaction fee electronic channel that they continue to develop.

& # 39; "We also grow products basic income "From bank insurance products, products for consumer banking such as credit cards and mortgages," said Rudy.

Read also: BI raises interest rates again to become 6 percent

Previously, at the monthly meeting of the Board of Governors, BI decided to increase the benchmark 25-basis-point BI (BI7DRRR) repo rate by 25 basis points (bps) at 6%.

If accumulated, in 2018 BI raised its interest rates six times by 175 basis points. Deposit facility interest rates also increased by 25 basis points to 5.25% and lending facilities by 6.75%.

BI made the decision to address the global situation, including reducing the current account deficit (CAD). For information, the current account deficit in the third quarter of 2018 was 3.37% of GDP, or 8.8 billion US dollars.

BI's decision to raise interest rates is also a form of anticipating an increase in US Federal Reserve interest rates.