Jakarta E ecutive Director of the Indonesian Deposit Insurance Corporation’s (IDIC’s) Board of Commissioners Purbaya Yudhi Sadewa assessed the national economy, which has started recovering from the impact of the COVID-19 pandemic, still needs a stimulus to grow even faster.

“The steps include maintaining the IDIC guarantee interest rate at a level that still provides room for deposit interest rates to be at a low level, so that loan interest rates can continue the current downward trend. These efforts should be made while taking into account the development of financial system stability and banking liquidity,” he noted in a statement here on Saturday.

During the pandemic, the IDIC had lowered the guarantee interest rate to its lowest level in history.

A reduction in the guarantee interest rate is expected to help banks reduce the cost of funds, which in turn will trigger a decrease in loan interest rates.

“Credit interest rates for consumption have fallen to 10.6 percent, while it is around 8.85 percent for working capital, and 8.5 percent for investment. According to our monitoring, the graph continues to decline from month to month in a row,” Sadewa noted.

Source: Antara News