State banks follow suit with 25bps rate cut for ‘vulnerable’ customers
State banks agreed to cut their interest rate by 25 basis points on Friday, a day after commercial banks said they would do the same for vulnerable customers.
Friday’s move to reduce the interest rate for six months from May 1 was agreed at a board meeting of the Government Financial Institutions Association (GFA), said Withai Rattanakorn, director of the Government Savings Bank and GFA chairman.
The GFA comprises the Government Savings Bank, Government Housing Bank, SME Development Bank of Thailand, Export-Import Bank of Thailand, Small Industry Credit Guarantee Corporation, and Islamic Bank of Thailand.
The banks said the rate was being reduced to assist retail customers and vulnerable groups in line with government policy.
Prime Minister Srettha Thavisin had asked banks to cut interest rates earlier this week after the Bank of Thailand declined his repeated requests to reduce its policy rate of 2.50% which he said was hurting business and economic recovery.
The state-run Agricultural and Agricultural Cooperatives Bank also agreed to the 25-basis-point cut for vulnerable customers.
Explaining the move, Withai said: "The GFA and its member banks are mindful of the financial burden on the public and the ongoing economic challenges. The association is committed to supporting government policies to stimulate the economy and various financial measures implemented to alleviate burdens and enhance household liquidity. This will contribute to improving the quality of life for the public.”
