Four banks follow lead on cutting loan rates
Four banks will cut interest rates on loans tomorrow (February 7) in view of the economic slowdown and impact from the novel coronavirus outbreak, said the banks in their respective announcements on Thursday (February 6).
Their move followed the policy rate reduction by the Bank of Thailand's Monetary Policy Committee (MPC) on Wednesday (February 5).
Kasikornbank (KBank) was the first to announce a rate cut on Wednesday shortly after the MPC's decision.
Effective today, KBank has reduced its minimum retail rate (MRR) for SMEs and individual customers to 6.62 per cent from 6.87 per cent.
Siam Commercial Bank (SCB) will lower its Minimum Loan Rate (MLR) to 5.775 per cent from 6.025 per cent, effective tomorrow.
Recently the bank launched a six-month grace period for repayment of the loan principal amount to existing customers in the hotel business as an urgent measure to help mitigate the impact on their business from the coronavirus crisis.
Government Housing Bank (GH Bank) will trim MLR, minimum retail rate (MRR) and Minimum Overdraft Rate (MOR), effective tomorrow.
It will cut MLR from 6 per cent a year to 5.875 per cent, MRR from 6.5 per cent a to 6.375 per cent and MOR from 6.750 per cent a year to 6.500 per cent.
Government Savings Bank (GSB) will cut both MRR and MOR from 6.745 per cent to 6.495 per cent tomorrow. Krungthai Bank (KTB) will also cut its minimum loan rate (MLR) from 6.025 per cent per year to 5.775 per cent, effective tomorrow.
The MPC on Wednesday voted unanimously to trim the policy rate by 0.25 percentage point from 1.25 per cent to 1 per cent, effective immediately.
The reduction was in line with MPC's estimate that Thai economy growth would be lower than its previous forecast, due mainly to the new coronavirus outbreak, delay of the 2020 fiscal budget disbursement and drought.
