JAKARTA, Sept. 29 (Xinhua) -- Central bank of Indonesia is optimistic that interest rate for banking credits will start declining at the first quarter of next year following its easing policy in the last two months, governor of the lender Agus Martowardojo said here on Friday.
The Indonesian central bank, Bank Indonesia, has cut rate by 50 basis points in August and September to 4.25 to help spur GDP growth.
"It is expected the interest rate for the credit will decrease from its latest position," he said at the central bank headquarters.
Currently banking credit rate is at 11 percent, according to Martowardojo.
The lender estimates loan growth to expand 10 to 12 percent next year from this's year expectation of 8 to 10 percent, he said.
The government has attempted to boost investment along with consumption, which both of them among the major contributors to the GDP growth.
The government expects the country's economy to expand 5.4 percent next year from this year's projection of 5.17 percent. Last year, the GDP growth was at 5.02 percent.
