KBank first to cut lending rates
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Kasikornbank takes the lead in cutting lending rates, with its chief executive officer urging other banks to join hands in reviving the economy.
Banthoon Lamsam today announced the 25-basis point cut in the minium retail rate (MRR), effective tomorrow. The minimum overdraft rate (MOR) and minimum loan rate (MLR) will be cut by 13 basis points.
The bigger cut in MRR is meant specifically to help small and medium-sized enterprises (SMEs).
Banthoon urged other banks to follow suit, "to help the country".
Poor external demand is dampening the Thai economy, as the export sector contributes some 70 per cent to the gross domestic product. Hopes are on government spending to boost the economy this year, which is widely expected to grow less than 4 per cent. This is despite the low growth base of 0.7 per cent in 2014.
