Thai banks expected to soon cut lending rates

BANGKOK, June 3 (TNA) - Deputy Prime Minister and Finance Minister Kittirat Na-Ranong says that local banks are expected to soon cut their lending rates, after the Bank of Thailand (BOT) recently lowered its policy interest rate by 0.25 per cent, from 2.75 per cent to 2.50 per cent. Kittirat told reporters on Monday whenever the BOT changes its key interest rate, the repurchase rate, state-run financial institutes and commercial banks in the country normally take times for consideration before changing their lending interest rates accordingly. Kittirat foresaw that only lending rates in Thailand would soon be reduced, but deposit rates would not in order to protect savings in the country, noting that the Thai government will issue new bonds to encourage domestic saving as well. The deputy premier, however, declined to give any comment on recent reports that Moody’s Investors Service is about to downgrade the credit rating of Thailand, from Baa1 with stable outlook, due to the government's loss-ridden rice pledging scheme, reasoning that he has had no details on the reports yet and the Fiscal Policy Office (FPO) will explain the matter later. (TNA)