The central bank (Bank Indonesia/BI) reported that the economic liquidity measured by broad money (M2) accelerated 10% (yoy) in March 2017, from 9.2% (yoy) in February 2017. M2 growth accelerated on the back of stronger credit growth in the banking sector. In March, the disbursed loans reached Rp4,395.4 trillion, grew by 9.1% (yoy), higher than 8.4% growth in February, primarily on the working capital loans and investment loans. The banking sector continued to lower its lending rates throughout March 2017 in line with the loose monetary policy stance maintained by BI. The average lending rate was observed to decline from 11.97% to 11.90%.