Central bank orders cut in interest rates across the board
The Bank of Thailand (BOT) has ordered commercial banks and non-banking entities to cut down the interest rates they charge for credit cards, personal credit and hire purchase by 2 to 4 per cent in a move to help people struggling with debt due to the Covid-19 crisis.
On Wednesday (June 17), the central bank invited the representatives of financial institutions to inform them about the remedial measures created to help people overwhelmed with household debt, such as outstanding credit card bills, car payments and home mortgages.
This reduction will standardise interest charged by banks and non-banking entities, unlike the measure issued in late April, which allowed banks to help their customers as per their discretion.
The central bank said interest rate will be cut in general, not just for consumers affected by Covid-19.
BOT also plans to expand the financial coverage limit on all credit cards as well as personal credit and cash cards.