Siam Commercial Bank Leads the Way with Loan Rate Cuts Following Central Bank Decision

Siam Commercial Bank (SCB) has become the first major commercial bank in Thailand to announce a reduction in loan interest rates, cutting rates by up to 0.25% per annum.

This move aligns with the Monetary Policy Committee’s (MPC) decision on Wednesday to lower the policy interest rate by 0.25%, from 2.25% to 2.00% per annum.

The MPC’s decision was made to ease financial conditions, reflecting a revised economic outlook that anticipates slower growth and aims to mitigate future uncertainties.

The SCB rate reductions will take effect on 3rd March 2025, according to a statement released by the bank on Thursday.

Kris Chantanotoke, SCB’s Director and Chief Executive Officer, emphasised that the Thai economy is expected to experience moderate growth this year, facing challenges from external pressures and domestic vulnerabilities.

Kris Chantanotoke

He stated that the MPC’s interest rate cut would help to reduce financial costs, stimulate spending and investment, and boost liquidity, thereby supporting long-term economic recovery.

The move is designed to alleviate current financial strains and improve access to funding for businesses and individuals, particularly small and medium-sized enterprises (SMEs) facing competitive pressures and liquidity constraints, as well as retail customers struggling with income recovery and high debt burdens.
 

In direct response to the MPC’s policy interest rate cut, Siam Commercial Bank has implemented the following reductions:

• Minimum Overdraft Rate (MOR) for prime corporate customers: reduced from 7.325% to 7.075% per annum.
• Minimum Retail Rate (MRR) for prime retail customers: reduced from 7.175% to 7.075% per annum.
• Minimum Loan Rate (MLR) for prime corporate customers with term loans: reduced from 6.925% to 6.825% per annum.