Banks swiftly follow policy rate reduction

Six large local lenders cut interest

- SOMRUEDI BANCHONGDUANG WICHIT CHANTANUSORNSIRI

Local banks have responded swiftly to the Bank of Thailand's policy rate cut, reducing their lending interest rates.

The six domestic systemically important banks, comprising Bangkok Bank (BBL), Krungthai Bank (KTB), Kasikornbank, Siam Commercial Bank, Bank of Ayudhya (Krungsri) and TMBThanachart Bank, announced reductions of their prime lending interest rates across the board by 0.25 percentage points following the central bank’s policy rate cut on Wednesday.

Chaiyarit Anuchitworawong, senior executive vice-president of BBL, said the adjustment aligns with the regulator’s rate cut, supporting economic growth by stimulating domestic investment and consumption.

He said lower interest rates would help ease the financial burden on all customer segments, especially those affected by the US tariff, both directly and indirectly.

BBL's new lending rates are 6.50% for the minimum loan rate (MLR), 6.75% for the minimum overdraft rate (MOR) and 6.65% for the minimum retail rate (MRR).

KTB president Payong Srivanich said the bank's decision is meant to help customers adapt to challenges stemming from global production restructuring, supply chain shifts and intensifying competition, while also addressing pressing domestic structural issues.