Thai central bank should help retail borrowers, caretaker Finance Minister says
4:23 am Thursday, August 22nd, 2024
BANGKOK (Reuters) – Thailand’s central bank should assist retail borrowers after it held its benchmark interest rate steady this week, the caretaker finance minister said on Thursday.
Retail lending interest rates are too high and needed to be addressed, Pichai Chunhavajira told reporters. Minimum retail lending rates at banks are as high as 8%.
The central bank left its key interest rate unchanged at 2.50% for a fifth straight meeting on Wednesday, saying the level was neutral as it wants to see if the new prime minister will make changes to economic stimulus policies.
Paetongtarn Shinawatra, the 37-year-old daughter of billionaire political heavyweight Thaksin Shinawatra, was elected premier by parliament last week following a court’s dismissal two days earlier of ally Srettha Thavisin.
The central bank’s decision not to change the key rate reflected its perspective of the overall economy, Pichai said.
“But what needs to be considered more is the interest rates that the public has to pay. How can we make them less different and more appropriate?” he said.
Large companies receive quite low lending rates while small firms get higher rates, Pichai added.
Pichai has previously said credit access for smaller firms is more important than policy rate levels.
The central bank’s next rate review is due on Oct. 16.
(Reporting by Kitiphong Thaichareon; Writing by Orathai Sriring; Editing by Martin Petty)
