Line Bank Adjusts Interest Rates Following BI's Monetary Policy Shift

Rate Reduction Details

Line Bank, the digital banking arm of PT Bank KEB Hana Indonesia, has announced a reduction in interest rates for its Goal Savings product, effective February 25, 2026. This decision comes in response to the recent cut in Bank Indonesia's benchmark interest rate (BI-Rate) over the past year. The adjustment will specifically affect deposits with tenors of 6, 12, and 24 months, which previously offered an annual interest rate of 5%.

Market Context and Implications

The move by Line Bank reflects the broader trend in Indonesia's financial sector as institutions respond to the changing monetary policy landscape. With Bank Indonesia having lowered its benchmark rate, banks are adjusting their deposit rates accordingly. This change is significant for customers who have been attracted to higher-yield savings products during the period of higher interest rates.

Impact on Customers

Customers with existing deposits in Line Bank's Goal Savings product will see their interest rates adjusted to the new levels starting February 25, 2026. While the exact new rates were not disclosed, the adjustment is expected to bring the rates more in line with the current monetary policy environment and overall market conditions. This change highlights the importance for savers to stay informed about market developments and adjust their financial strategies accordingly.