Bangkok Bank (BBL), the country's largest lender by total assets, announced yesterday a new round of hikes for both lending and savings rates, effective yesterday, in line with the Bank of Thailand's policy rate increase on Wednesday.
The bank raised the minimum loan rate (MLR) by 0.2 percentage points from 6.25% per year to 6.45%, the minimum overdraft rate (MOR) by 0.15 percentage points from 6.75% to 6.9%, and the minimum retail rate (MRR) by 0.15 percentage points from 6.65% to 6.8%.
The bank also raised the savings deposit rate by 0.05 percentage points from 0.45% per year to 0.5%, and lifted the fixed deposit rates for three-month, six-month and 12-month products by 0.15%.
BBL increased the time deposit rates for 24-month and 36-month products by 0.25 percentage points.
On Thursday, several state banks began to raise loan interest rates for the first time in years, in line with the policy rate hike on Wednesday.
Government Housing Bank increased all types of loan rates by 0.25 percentage points, effective immediately, marking its first loan rate hike in two years and nine months.
Government Savings Bank made the same move, effective yesterday, while the Bank for Agriculture and Agricultural Cooperatives raised its loan rate by between 0.125-0.25 percentage points, effective Feb 1.
The central bank's Monetary Policy Committee (MPC) lifted the policy rate by 0.25 percentage points on Wednesday from 1.25% to 1.50%.
It was the fourth consecutive policy rate hike by the MPC, starting from August last year, followed by moves in September, November and on Wednesday, each time 0.25 percentage points.
The committee's secretary, Piti Disyatat, recently said banks would follow the policy rate hike by continuing to increase their interest rates.
He said banks should still take care of vulnerable customers, especially households and small and medium-sized enterprises (SMEs), even as the economy continues to rebound.
During the MPC's rate hike from August to November, banks raised their MRR at a lower level than that of MLR and MOR in order to mitigate the financial burden of individuals and SME customers, Mr Piti said.
