Jakarta - Bank Indonesia (BI) assessed that the decline in the prime lending rate for consumption was still met with a limited response by the decline in new loan interest rates, especially in the mortgage segment.

BI Governor Perry Warjiyo said the new mortgage interest rate in June 2021 fell by 124 bps compared to June 2020, much lower than the decline in its prime lending rate, which reached 212 bps.

"We will encourage intermediation through strengthening the policy on transparency of the basic lending rate  with an emphasis on transmitting the prime lending rate to new lending rates, particularly the mortgage segment," he was quoted as saying in a statement on Friday (21/8).

In June 2021, the interest rate on new mortgage loans was 6.60 %, down from 7.03% the previous month and 7.84% in June 2020. The weighted average mortgage interest rate in June 2021 was 8.26%, down from the previous month 8.27% and 8.57% in June 2020.

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