Moreover, it seems that to preserve high probability, banks charge high lending rates to customers, partly also to compensate for the generally lower rate from placement in monetary instruments and government securities. The low efficiency of banking industry has also contributed to high lending rate. This is reflected by operational cost to operational revenue ratio (BOPO) of 86.44% as of October 2011.
In addition, given the ongoing marked dynamism of monetary and credit growth in an environment of ample liquidity, a cross-check of the outcome of the economic analysis with that of the monetary analysis supports the assessment that upside risks to price stability prevail over the medium to long term. It is essential that inflation expectations remain firmly anchored at levels consistent with price stability.