Julapun tells state banks to cut interest rates after policy rate drop
Bank of Thailand Monetary Policy Committee announced 0.25-percentage-point rate cut on February 26
Deputy Finance Minister Julapun Amornvivat has ordered seven state-owned financial institutions to lower loan interest rates swiftly after the Bank of Thailand Monetary Policy Committee’s 0.25-percentage-point rate cut on February 26. However, no state banks have made adjustments yet.
“When rates rise, banks act quickly, but when they drop, days pass without action. I have reiterated the urgency of lowering interest rates to ease financial burdens and boost spending. As chairman of the board of the Bank for Agriculture and Agricultural Cooperatives, I have also instructed its management to proceed,” Julapun said.
Meanwhile, Deputy Prime Minister and Finance Minister Pichai Chunhavajira addressed concerns over whether other state banks would follow suit. He said banks’ monetary-policy authorities must assess both domestic and global conditions before making decisions.
The seven state-owned financial institutions are: Government Savings Bank (GSB), Bank for Agriculture and Agricultural Cooperatives (BAAC), Government Housing Bank (GHB), Export-Import Bank of Thailand (EXIM Bank), Small and Medium Enterprise Development Bank of Thailand (SME D Bank), Islamic Bank of Thailand (IBank), and Thai Credit Guarantee Corporation (TCG).
