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BOT: Banks Need to Lower Lending Rates |
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Thursday, 30 August 2007 |
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In dismissing the need for a 6th rate cut this year, assistant central bank governor Suchada Kirakul suggested banks had enough leeway in their profit structure to reduce lending rates without BOT action.
With the prime rate currently hovering between 6.9-7.0% at major banks, against 3 month deposit rates of 2.25%, Suchada pointed out that "[t]here is room for financial institutions to lower lending rates further, as the MPC has reduced interest rates for five times in all meetings so far this year. We want to pause and assess the situation.''
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