ANALISIS EFEKTIFITAS TRANSMISI KEBIJAKAN MONETER DI INDONESIA MELALUI JALUR SUKU BUNGA

Monetary policy is the key to economic stability, monetary policy itself cannot be separated from monetary policy transmission. This research aims to determine whether monetary policy transmission through the interest rate channel can effectively increase economic growth in Indonesia in the short and long term and determine the two-way relationship between monetary policy transmission and economic growth in Indonesia. The quantitative data used in the research is secondary data obtained from the Central Bank of Indonesia (BI), the Central Statistics Agency (BPS) and global rates. The information used in this research is International Interest Rates (LIBOR), PUAB Interest Rates, Deposit Interest Rates, Credit Interest Rates and Gross Domestic Product (GDP) of Indonesia from 1987 to 2022. The analysis tools used are the Granger causality and VECM approaches. The results of the causality test show that there is a one-way relationship between the Libor variable on credit and deposits. In the short term, the Libor instrument has a more effective influence on economic growth, whereas in the long term, the variable credit interest rates, interbank money market interest rates, international interest rates and deposits require a time lag of 2 to 3 to be able to influence economic growth.Monetary