ID :
27894
Sat, 11/01/2008 - 07:38
Auther :
Shortlink :
http://m.oananews.org//node/27894
The shortlink copeid
BI URGED TO CUT KEY RATE BY 50 BASIS POINTS UNTIL END OF 2008
Jakarta, Oct 31 (ANTARA) - Young Indonesian businessmen have called on Bank Indonesia (the central bank/BI) to cut its benchmark interest rate by at least 50 basis points in the next two months.
The cut in the key rate, locally known as BI Rate, would stimulate banks to lower their lending rates by 2-3 percent, Chairman of the Young Indonesian Businessmen Association (HIPMI) Erwin Aksa said here on Friday.
"Hopefully, the cut in the key rate will give the business world access to capital and banks will no longer be afraid of non-performing loans," he said.
He said BI Rate which currently stood at 9.50 percent was too high, depriving the business world of access to low interest credits to finance their businesses.
In addition, it also took long time for banks to consider applications for credits for fear that the credits would turn problematic because of the high lending rates, he said.
"That's why we actually regret the higher lending rates, the more so because The US Fed has lowered its interest rate. The Bank of Japan which did not lower its interest rate for the seventh year in a row has begun lowering its benchmark interest rate," he said.
The cut in the key rate, locally known as BI Rate, would stimulate banks to lower their lending rates by 2-3 percent, Chairman of the Young Indonesian Businessmen Association (HIPMI) Erwin Aksa said here on Friday.
"Hopefully, the cut in the key rate will give the business world access to capital and banks will no longer be afraid of non-performing loans," he said.
He said BI Rate which currently stood at 9.50 percent was too high, depriving the business world of access to low interest credits to finance their businesses.
In addition, it also took long time for banks to consider applications for credits for fear that the credits would turn problematic because of the high lending rates, he said.
"That's why we actually regret the higher lending rates, the more so because The US Fed has lowered its interest rate. The Bank of Japan which did not lower its interest rate for the seventh year in a row has begun lowering its benchmark interest rate," he said.
