BoT: No need for banks to increase interest rates

 

 

BANGKOK, 25th December 2018 (NNT) - The Bank of Thailand (BoT) has confirmed commercial banks still don't have to increase their interest rates on loans, due to a high level of excess liquidity in the economic system. 

BoT Governor Veerathai Santiprabhob said the public should not be concerned about the new policy interest rate which has increased by 0.25% to stand at 1.75%. The high level of excess liquidity is the main reason that commercial banks will maintain loan interest rate on retail loans. If necessary, the banks can increase the interest rate for business loans, said the central bank governor. 

About two in every three housing loan borrowers pay a 3-year fixed interest rate while the interest rate on credit card and personal loans is up to 28%. The governor therefore concluded that people will not be affected by the BoT’s interest rate hike since the interest rates of housing and personal loans will not increase. He added that savers will benefit from the higher policy interest rate the most, following a subsequent rise in interest rates of short-term investment and regular deposits. 

Mr.Veerathai further stated that the central bank makes its decisions on financial policy based on economic data in each period of time.

 

-- nnt 2018-12-25

So interest rates wont increase for borrowers but will increase for savers, nice one !

5 hours ago, webfact said:

No need for banks to increase interest rates

Of course not.  Just keep issuing official statements that there is no inflation in the economy (even as the locals and retailers are jacking up their prices). 

But of cause the Banks will increase rates for lenders,

no way are the going to cut their bottom line.

regards worgeordie

9 hours ago, webfact said:

About two in every three housing loan borrowers pay a 3-year fixed interest rate 

They don’t need to, but they will anyway.  They are assuming everyone is still in the 3 year fixed rate period ????. More BS