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Oleh Amrln, Jumat, 3 Februari 2017 | 10:59 WIB - Redaktur: Penni Patmawati Rusman - 634
Jakarta, InfoPublik - Bank Indonesia reported that economic liquidity or broad money (M2) growth has accelerated in December 2016. M2 reached Rp 5.003,3 trillion or grew 10.0% (yoy) compared to its growth in previous month which was at 9.3% (yoy).
Based on its components, the increasing of M2 was triggered by narrow money (M1) and securities other than shares which accelerated respectively from 12.5% (yoy) and -2.9% (yoy) in November to 17.3% (yoy) and 0.9% (yoy).
"M2 growth acceleration was mainly affected by the expansion of the central government’s financial operations," Bank Indonesia’s Communication Department Executive Director Tirta Segara stated in press release on Thursday (2/2).
At the end of the year, Tirta said, the central government’s financial operations increased, as reflected in the decreasing of central government’s deposits at Bank. This condition was in line with the increasing of central government’s net charges from -2,3% (yoy) in previous month to 5.7% or Rp519.3 trillion in the end of December 2016.
Meanwhile, he explained, the lending rate was recorded to decline and the deposit interest rate fluctuates. The lending rate declined from 12.16% in November to 12.04% in December, and the interest rate on 6 and 12-month term deposits declined from respectively 7.12% and 7.40% to 7.11% and 7.31%.
On the contrary, the interest rate on 1 and 24-month term deposits increased from respectively 6.36% and 7.36% in previous month to 6.46% and 7.38% As for the interest rate on 3-month term deposit remained unchanged at 6.69% from the previous month. (Translator: Rina Alexandra)
