Four banks cut loan interest rates in bid to lift economy

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Four banks cut loan interest rates in bid to lift economy

By THE NATION

 

Predee

 

Four major banks today cut their MRR (Minimum Retail Rate) by 0.25 percentage point, effective from Thursday (August 15), to help lower the financial costs of small and medium enterprises (SMEs), increase their competitiveness and support the Thai economy.

 

The four banks were Kasikornbank (KBank), Krungthai Bank (KTB), Bangkok Bank (BBL) and Siam Commercial Bank (SCB).

 

But while KBank, KTB and BBL also cut the Minimum Overdraft Rate (MOR) by 0.25 percentage point, SCB will cut its MOR by 0.125 percentage point bringing its interest rate for MRR to 7.12 per cent and for MOR to 6.745 per cent. SCB's Minimum Loan Rate or MLR remains unchanged at 6.025 per cent. 

 

BBL director and senior executive vice president Suvarn Thansathit said the bank’s reduction of 0.25 per cent in its MOR and MRR was aimed at helping business operators, especially SMEs, to lower their interest rate costs which contribute to business operation costs.

 

“Bangkok Bank is committed to assisting business operators to improve their business efficiency and competitiveness, which will help drive the economy in line with government policies”, Suvarn said.

 

The move by the banks was in line with the central bank’s decision on August 7 to reduce its policy rate from 1.75 to 1.50 per cent. 

 

As of Wednesday, the two rates at KBank stood at 7.12 per cent. 

 

KBank president Predee Daochai confirmed that the aim was to ease the burden on SMEs and retail clients. 

 

KTB’s move to cut its rates by 0.25 percentage point brought its overall rate down to 6.87 per cent.

 

Source: https://www.nationthailand.com/business/30374778

 

-- © Copyright The Nation Thailand 2019-08-15

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[RichardColeman]

If the banks think that a cut of 0.25% will make up the say -10% loss of exports to China and the rest of the world, they clearly been trying that medical marajuana

[lagarto]

that means that if my wife who is paying a credit card debt at 20% interest, can re-negotiate to a lower rate now? thanks for the advice

[HeyHeyHey]

Monopolistic mafia in highlight

 

In normal market with healthy competition the rate would be lowered within couple of days after the central bank cut it. First probably by a smaller, progressive bank, later followed by the big ones to keep up.

 

Not in Thailand. Big bois set it simultaneously.

 

Price gouging and market exploiting its called in developed countries.