Thailand's Interest Rates Already Bottom Out: Top Banker

[george]

Local interest rates already bottom out, says top banker

BANGKOK: -- Thailand’s local deposit and lending rates have already bottomed out and are expected to turn to increase in the long run, according to a top banker.

Mr Thawatchai Suthikijpisal, president of Kiatnakin Bank, said the deposit and lending rates would not edge lower than the current level.

At present, local commercial banks had competed for long-term deposits, particularly the fixed 3- and 4-year deposits by increasing the deposit rate by 50-100 basis points.

He said the banks had competed to raise funds since the liquidity in the system is expected to decline upon the government’s plan to bring money in the financial system to finance investment projects initiated under the “Thai Khem Keng (Stronger Thai)” scheme.

Under the circumstance, the short-term interest rate is expected to stay unchanged for a while and the long-term rate is likely to edge up.

Mr Thawatchai noted many commercial banks are competing to attract potential homebuyers by offering a fixed 1-year interest rate for housing loans.

He suggested clients opt for a fixed 3-4 year interest rate for housing loans because it could enable them to make a proper financial plan.

-- TNA 2009-08-19

[dale8]

Hello, this is consistant with the rest of the world as the economic conditions get better. The exchange rates need to get more export friendly to help Thailand and the people, and this is a conservative way to make things better. I hope that the banks will try to ease the loan restrictions to stimulate the economy, and the government will have to work with the private industries to get things going in a positive way so more people can get a good paying job. Cheers.