Responses of Retail Interest Rate to Policy Rate in Indonesia.

Aditya Suselo, Dony Abdul Chalid

Research output: Contribution to conferencePaperpeer-review

Abstract

Transmission of monetary policy have saveral channels, and one of them is through interest rate channel. Using banks data in Indonesia for period 2006-2016, this study attempt to measure the change of bank's interest rate toward the change in central bank's policy rate, by seeing the momentum of interest rate pass through using eror-correction model. The results show the adjustments of retail bank rates as between loans and deposit, between type, and across maturities are differet. The results provide some evidences about the inefficiency of monetary policy through interest rate channel of Indonesia.
Original languageEnglish
Publication statusPublished - 2017
EventInternational Conference on Finance, Management and Business (ICFMB) - ID, Jakarta, Indonesia
Duration: 1 Jan 2017 → …

Conference

ConferenceInternational Conference on Finance, Management and Business (ICFMB)
CountryIndonesia
CityJakarta
Period1/01/17 → …

Keywords

  • Bank, Interest rate pass through, central bank policy rate, commercial bank interest rate, Indonesia.

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