Bank of Thailand Raises Key Interest Rate

[webfact]

 

BANGKOK – The Bank of Thailand (BoT) raised its key policy rate by 0.25 percentage point from 1.75 to 2.00 percent, effective immediately.

Mr. Piti Disyatat, Secretary of the Monetary Policy Committee (MPC), announced the outcome of the meeting on Wednesday.

 

The Thai economy should continue to expand, driven mainly by tourism and private consumption. Merchandise exports are expected to recover gradually.

 

Full story: https://tna.mcot.net/english-news-1182019

 

-- © Copyright Thai News Agency 2023-06-01

 

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[spidermike007]

With the huge spread that Thai banks charge this likely means home loans at over 7%. This will likely mean a slowing down of the residential and condo market even more. Anyone looking to buy might want to wait a bit. Prices are likely to correct, even more. 

[proton]

About time the rates on savings increased

[KhunBENQ]

Not euphoric.

By usual rules this would strengthen the Baht even more?

[FlorC]

At these rates , the 800k in the bank is like a hidden tax to stay in the country.

[worgeordie]

2 % , what the banks are offering on your deposits , still well below the real inflation figures,

not what Govt  says inflation rates are. I am getting less than 1 % on my retirement account

at Bangkok Bank. Cash used to be king , now its melting away....

 

regards worgeordie

[KhunBENQ]

1 hour ago, FlorC said:

At these rates , the 800k in the bank is like a hidden tax to stay in the country.

Another reason for me to unfreeze the money this year by the income method.

[FlorC]

3 hours ago, KhunBENQ said:

Another reason for me to unfreeze the money this year by the income method.

Yes but if you don't have the required 65k a month , you have to do the combination methode at the yearly extention. A bigger pain.

+ monthly paying the banks for the transfer , no thanks.

[gamb00ler]

6 hours ago, FlorC said:

At these rates , the 800k in the bank is like a hidden tax to stay in the country.

 

5 hours ago, KhunBENQ said:

Another reason for me to unfreeze the money this year by the income method.

I ran some quick calculations and you wouldn't benefit that much by keeping the 800K ฿ in either a money market or short term CD back in USA.

 

My assumptions were:

• receiving 1.5% interest at SCB EZ savings account in Thailand
• receiving 4.8% in US money market
• transferring via Wise at the start of each month
• funds are never transferred back to US
• fluctuations in exchange rates assumed to cancel out over the course of a year
• each Wise transfers costs .0625% of value + 1$ (using Wise's cheapest method)
• transferred funds are deposited into SCB EZ savings account immediately

Net result is keeping money in SCB gives 812,000฿ at year end.

Keeping funds in US and sending 65K฿ to Thailand each month gives 819,183฿ at end of year.

 

After expenses the US account with monthly transfers gives you an extra 7,183 ฿.

 

If you live a little dangerously and wait until near the end of each month before doing the transfer to Thailand you can improve that result slightly.

Edited June 1, 2023 by gamb00ler

[KhunBENQ]

5 hours ago, FlorC said:

Yes but if you don't have the required 65k a month , you have to do the combination methode at the yearly extention. A bigger pain.

+ monthly paying the banks for the transfer , no thanks.

I can still get an income certification from the consulate.

State pension plus company benefits would be > 65k.

I will try this after the latest pension rise statement comes via postal mail.

 

Edited June 1, 2023 by KhunBENQ

[KhunBENQ]

3 hours ago, gamb00ler said:

I ran some quick calculations and you wouldn't benefit that much by keeping the 800K ฿

Maybe it was not clear enough. I only want to free the money in case I need it for an urgency like a surgical procedure.

[FlorC]

13 hours ago, KhunBENQ said:

Maybe it was not clear enough. I only want to free the money in case I need it for an urgency like a surgical procedure.

That is the other side of the coin of course.

The 800k as health insurance.

If I had paid for that insurance , all the money would have been gone , but the 800k is still there.

[Henryford]

22 hours ago, KhunBENQ said:

Another reason for me to unfreeze the money this year by the income method.

Even if i move to the income method i would still want to keep a sizeable sum in the bank here, for emergencies. So the 400k, for 7 months, is not too bad. And, until recently, i get more interest than i would in a UK bank.

Edited June 2, 2023 by Henryford