RELATIONSHIP BETWEEN BANK INDONESIA INTEREST RATES AND GUARANTEED INTEREST RATES TO BANKING INTEREST RATES
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Published: October 12, 2025
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Page: 217-224
Abstract
In order to achieve and maintain the stability of the Rupiah, Bank Indonesia implements monetary policy. One of the tools for implementing Bank Indonesia's monetary policy is by setting the Bank Indonesia reference interest rate. On the other hand, there is the Deposit Insurance Agency which sets the guarantee interest rate which is one of the criteria used when determining the status of deposits that are eligible for payment or not eligible for payment if a bank has its business license revoked by the Financial Services Authority. With two references, the Bank Indonesia reference interest rate and the LPS guarantee interest rate, banks have alternatives in calculating the interest offered to the public. This study aims to analyze the influence of the BI reference interest rate and the LPS guarantee interest rate. The study uses descriptive analysis and causality tests. The results show that the Bank Indonesia reference interest rate and the LPS guarantee interest rate have an influence on the determination of bank interest rates.
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