Krungthai Bank follows BOT, cuts interest rate by 0.25 per cent

Krungthai Bank has announced a reduction in its loan interest rates by up to 0.25%, in response to the recent policy rate cut by the Bank of Thailand (BOT)’s Monetary Policy Committee, according to a statement released on Friday. 

This move makes Krungthai the second major bank after Siam Commercial Bank to follow the BOT’s lead. The bank said it was designed to bolster Thailand's economic momentum and alleviate the financial strain on its customer base, enabling them to navigate future economic uncertainties with greater resilience. 

The revised rates are scheduled to take effect on Monday (March 3). 

Payong Srivanich, president and chief executive officer of Krungthai Bank, emphasised that this decision aligns with the government’s efforts to drive economic growth amidst a complex global landscape. 
 

Payong Srivanich

He cited challenges posed by international economic policies and domestic structural issues, including the significant size of the informal economy and elevated levels of household debt. 

By implementing a 0.25% reduction in loan interest rates, Krungthai Bank said it aims to harmonise financial conditions with prevailing economic and inflationary trends. 

The bank also seeks to maintain financial system stability, mitigate financial pressures without compromising long-term stability, and effectively address future economic volatilities.
 

The updated interest rates are as follows:

• The Minimum Overdraft Rate for prime corporate clients has been lowered from 7.270% per annum to 7.020% per annum.
• The Minimum Lending Rate for prime corporate clients with term loans has been adjusted from 6.925% per annum to 6.825% per annum.
• The Minimum Retail Rate for prime retail clients has been reduced from 7.445% per annum to 7.345% per annum.