Banks Gradually Increasing Interest Rates

Banks increasing interest rates

BANGKOK (NNT) -- Domestic commercial banks are gradually increasing their interest rates following the recent resolution of the Monetary Policy Committee to increase the policy interest rate by 0.25% to stand at 1.5%, according to the Bank of Thailand (BoT).

As elaborated by BoT Assistant Governor for Supervision Group, Sorasit Soontornkes, at present there are 14 commercial banks in Thailand increasing their both deposit and loan interest rates. It is a normal phenomenon for commercial banks to raise interest rates following the policy interest rate.

Other commercial banks yet to increase their interest rates are expected to adjust their rates by next week after they have observed reactions of other bigger commercial banks.

Bangkok Bank, Krung Thai Bank, Kasikorn Bank, and Bank of Ayudhya have increased their rates for fixed deposit account to around 0.10-0.55% on average and have increased their lending interest rates to around 0.05-0.15% on average.

The loan approval for commercial banks in Thailand in the second half of this year is expected to expand further following the national economic revival and increasing economic confidence.

-- NNT 2010-07-22