SCB hikes deposit and loan interest rates
Siam Commercial Bank (SCB) announced today that it will increase its deposit and loan interest rates in line with the Monetary Policy Committee’s decision to raise the policy rate by 0.25% p.a., from 1.50% to 1.75% p.a., effective immediately on March 29, 2023
To promote long-term savings and help depositors earn more interest income, SCB will raise the deposit interest rate at a maximum rate of 0.30% p.a. Additionally, interest rates for Minimum Retail Rate (MRR), Minimum Loan Rate (MLR), and Minimum Overdraft Rate (MOR) will be raised by 0.25% p.a. to support the Bank of Thailand’s monetary policy implementation and to align with the overall interest rate direction of the commercial banking system. The interest rate adjustments will take effect from April 6, 2023.
Commenting on the rate hikes, Mr. Kris Chantanotoke, Chief Executive Officer of Siam Commercial Bank, said, “Despite the fact that the Thai economy continues recovering, it still faces increasing uncertainties, especially from external factors like the global economic slowdown, stability issues involving the banking systems in the US and Europe, and persistent high inflation in the US and Europe amid an increasingly uncertain interest rate trend. In line with the MPC’s policy rate increase, SCB will raise its deposit by a maximum of 0.30% p.a. and its lending rates by 0.25% to reflect higher systemic financial costs in the system. Effective April 6, 2023, the newly adjusted MRR will be increased from the current 6.620% to 6.870% p.a., the MLR from the current 6.350% to 6.600% p.a., and the MOR from the current 6.895% to 7.145% p.a. per year. SCB understands that these adjustments may impact its customers, particularly the loan rate adjustment. The Bank will continue to take special measures to assist customers in various areas, especially those who are still vulnerable.
