Commercial banks are quite likely to raise both their deposit and lending rates following the Bank of Thailand (BoT) decision to raise the policy interest rate by 25 basis points on Dec 1, according to the central bank’s Deputy Governor Krirk Vanikkul.
He also believed the interest rate adjustment would be made in a proper and acceptable manner.
Asked whether the interest hike would lead to a fierce competition for deposit mobilization, he said it depended on how much a particular bank raises interest rates.
Krirk said some banks expected the Thai economy would continue improving for a while.
“So, should the deposit rate edge up, it shows the banks need a cash flow to prepare lending,” he said. (MCOT online news)