Director of Macro prudential Policy of the Central Bank Dwityapoetra S. Besar, said here on Wednesday relaxation already began in the central bank monetary policy in 2016 though not very significant.
Currently the KPR interest rates average 10.3 percent per year, he said.
"If the interest rate on KPR at 10.3 percent , the average lending rate would be 11 percent. That shows the transmission," he said.
However, a cutback in KPR interest rate would depend much on the ability of each bank to keep the cost of fund down, he said.
The central bank has issued a stimulus in monetary policy in a bid to push down bank lending rate with a 150 basis point cut in its benchmark interest rate (BI 7-Day Reverse Repo Rate) to 4.75 percent.
Meanwhile, the Financial Service Authority (OJK) cut the Minimum Reserve Requirement by 150 basis point to 6.5 percent in December, 2015 to help bank in improving their liquidity.
Dwitya , however, said banks have yet to face many hurdles in cutting the lending rate . One of the hurdles is potential increase in inflation as a result of the increase in the electricity tariff for 900 VA subscribers.
"Yes, we have to see that it will depend also on the macro economic condition," he said.(WDY))
