Jakarta: Broad Money (M2) totalled Rp5,744.0 trillion in April 2019, as growth decelerated to 6.2% (yoy) from 6.5%( yoy) the month earlier, weighed down by quasi-money that slumped to 6.2% (yoy) from 7.0% (yoy) in March 2019.
On the other hand, faster growth of narrow money (M1) and securities other than shares offset a deeper M2 decline, accelerating respectively to 5.8% (yoy) and 31.1% (yoy) in April 2019 from 4.8% (yoy) and 23.7% (yoy) the month earlier.
"Based on the affecting factors, a contraction of Net Foreign Assets (NFA) coupled with slower credit growth were the main drag on M2 growth," Bank Indonesia said in a press statement released on Friday.
The NFA contraction deepened in April 2019 to -5.8% (yoy) from -3.7% (yoy) the month earlier in line with an increase of foreign liabilities despite a relatively stable position of reserve assets.
In addition, loans disbursed by the banking industry grew 11.0% (yoy) in April 2019, down from 11.5% (yoy) the month earlier.
Meanwhile, the Government pursued expansionary fiscal operations, as confirmed by a reversal of net claims on the central government from -9.1% (yoy) to positive 5.1% (yoy), triggered by a decline of central government demand deposits in the monetary system.
"The banking industry maintained relatively stable lending rates in April 2019, with a mixed deposit rate response," the central bank noted.
The weighted average lending rate was recorded at 10.82% in April 2019, relatively stable compared with the 10.84% in the previous period.
Meanwhile, the weighted average deposit rate on 1-month term deposits decreased from 6.84% in March 2019 to 6.80% in April 2019.
The weighted average deposit rates on 3 and 6-month term deposits were relatively stable at 6.83% and 7.36% respectively, contrasting the average deposit rates on 12 and 24-month term deposits which increased from 6.87% and 7.26% in March 2019 to 6.93% and 7.29% in the reporting period.