Abstract

The purpose of this study is to analyze the effect of interest rates and inflation on consumer credit in Indonesia. The multiple regression model is used in this study from 2018 to 2022. Interest rates and inflation are significant to affect consumer financing demand in Indonesia. The research results show that interest rates and inflation are known to influence demand for consumer financing in Indonesia. Central bank policy, as a reference and policy maker, must keep interest rates stable to channel consumer credit to people who lack funds and loans to banks to meet their consumption. The government is expected to be able to reduce the rate of inflation and make it easier for people to consume the goods they want at relatively stable prices

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