BOT:Thailand's new key interest rate hike raises savings for people

BANGKOK, December 24 (TNA) - The Bank of Thailand (BOT) says that last week's increase in the central bank's key interest rate by 0.25 per cent, from 1.50 per cent to 1.75 per cent, has immediately benefited people's savings, but has not yet affected their personal loans. Speaking at a media seminar in Khon Kaen Province in the Thai Northeast on Monday, BOT Governor Dr. Veerathai Santiprabhob pointed out that interest rates of saving accounts and such debt securities as bonds and mutual funds on the domestic financial market have been raised in line with the BOT's increased key interest rate, immediately benefiting individual people who have saving accounts or who have purchased the debt securities for certain periods of time. For personal loans, including overdraft (OD), as well as credit card and housing loans, Dr. Veerathai acknowledged that the lending interest rates have remained intact, thanks to a high liquidity status of financial institutes that have approved the loans. "The Minimum Loan Rate (MLR), the Minimum Overdraft Rate (MOR) and the Minimum Retail Rate (MRR) have all remained unchanged. Besides, about two-thirds of people who have been approved housing loans have benefited from a three-year fixed rates, while holders of credit cards have paid the fixed lending rates of 28 per cent at the maximum as regulated by BOT. So, the central bank's increased key interest rate won't affect individual lenders", the BOT governor explained. However, the BOT governor mentioned that any hike in lending rates, probably announced by commercial banks and other financial institutes in Thailand in the future, should only or first affect business operators who could decide on best lending programs for them amid the tough competition among commercial banks and other financial institutes. (TNA)