BoT Maintains Policy Interest Rate at 0.50%

[snoop1130]

 

BANGKOK, June 8 (TNA) – The Bank of Thailand’s the Monetary Policy Committee (MPC) on Wednesday voted 4 to 3 to maintain the policy rate at 0.50 percent at its meeting on Wednesday, according to Piti Disyatat, MPC Secretary.

 

Three members voted to raise the policy rate by 0.25 percentage point.

 

The Committee assesses that the Thai economy will continue to recover and could expand faster than previously expected owing to stronger domestic demand and the pickup in foreign tourists.

 

Full Story: https://tna.mcot.net/english-news-956463

 

-- © Copyright Thai News Agency 2022-06-08

 

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[ThailandRyan]

They need to raise interest rates to assist the economy...

[morrobay]

59 minutes ago, ThailandRyan said:

They need to raise interest rates to assist the economy...

Then all the household debt increases 

[kickstart]

At least the 800k I keep in the bank for retirement extension ,will be worth a bit more ,if they put up interest rates ,with inflation at 7% plus? it is losing value.

But how it would help the economy,an interest rise would make borrowing more expensive ,so holding back  investment and growth,plus the above. 

[ThailandRyan]

2 hours ago, morrobay said:

Then all the household debt increases 

True, but then people need to learn to live within there means and have no outstanding debts except maybe a mortgage and car payment which are fixed rates to begin with.

[jacko45k]

13 hours ago, ThailandRyan said:

They need to raise interest rates to assist the economy...

Doesn't that usually slow it down due to higher borrowing costs and reduced investment?

Edited June 9, 2022 by jacko45k

[ThailandRyan]

2 minutes ago, jacko45k said:

Doesn't that usually slow it down die to higher borrowing costs and reduced investment?

True as prices and demand would slow down, but the inverse would be that the interest rates on savings accounts and other monetary vehicles would increase, or could if the banks adjusted for it instead of browbeating the investors.  By investing and giving higher interest rates to customers it encourages more people to save as the savings rates offered by banks and credit unions will typically increase, too. These factors mean less money is circulating in the economy, which will hopefully reduce the level of inflation.  Not sure this would pertain to the majority of the Thai folks who live on the bubble, and it would and could hurt there pockets.  Fine edged sword...

[worgeordie]

On my 800 + K I have in 3 month fixed account for Immigration,

on my recent update I got 17 Baht interest ! took tax off it. the

rate .325 % , that money is slowly melting away in value.

 

I remember long ago getting 18 % interest here , the good old 

days ,used to go around the banks hawking my money ,always

got to see the manager,use to get .25 % or .50 % more, they 

wanted your cash, now they don't want to know you.

 

regards worgeordie

[jacko45k]

1 hour ago, worgeordie said:

On my 800 + K I have in 3 month fixed account for Immigration,

on my recent update I got 17 Baht interest ! took tax off it. the

rate .325 % , that money is slowly melting away in value.

That doesn't make sense.... 800k at 0,325% interest p.a is 650 baht for 3 months and about 550 after withholding tax. 

[ThailandRyan]

2 hours ago, jacko45k said:

That doesn't make sense.... 800k at 0,325% interest p.a is 650 baht for 3 months and about 550 after withholding tax. 

I used to make enough on my 800k fixed deposit to pay my annual extension fee, my fee to the bank for the annual letter, and have enough for lunch for the GF and me at CW.  Now it's just enough to pay the 1900 Thb extension fee and nothing more.  From 4% to .0325 in 3 years.

[jacko45k]

26 minutes ago, ThailandRyan said:

I used to make enough on my 800k fixed deposit to pay my annual extension fee, my fee to the bank for the annual letter, and have enough for lunch for the GF and me at CW.  Now it's just enough to pay the 1900 Thb extension fee and nothing more.  From 4% to .0325 in 3 years.

Wow. 0,0325%.. you can do better surely.

I stopped reclaiming my withholding tax, Not worth the effort... a bit worried they will 'come after me'.......for not doing a tax form.

Edited June 9, 2022 by jacko45k

[worgeordie]

3 hours ago, jacko45k said:

That doesn't make sense.... 800k at 0,325% interest p.a is 650 baht for 3 months and about 550 after withholding tax. 

Yes your right , just noticed they calculate the interest every month

it's confusing as they gave 5 lots of interest on 3 month fixed

B139 , 231.17 ,369.07 , 15.65 , 82.42  , total 817.31   tax 125.62 B

interest rate is .3750 % ,  But whatever, well below inflation.

 

 

 

regards Worgeordie

Edited June 9, 2022 by worgeordie