Thailand’s Caretaker Finance Minister, Pichai Chunhavajira, emphasized the need for the central bank to intervene and assist retail borrowers following its decision to maintain the benchmark interest rate steady earlier this week. Pichai expressed concerns regarding the excessively high retail lending rates, citing minimum rates of up to 8% at banks.
During the fifth consecutive meeting where the central bank opted to keep the key interest rate at 2.50%, Pichai remarked that the rates remain a challenge for retail borrowers and called for action to rectify the situation.
The decision to hold the rate unchanged was attributed to the bank’s stance of neutrality, awaiting potential adjustments to economic stimulus policies by the new Prime Minister, Paetongtarn Shinawatra, who assumed office amidst political developments.
Pichai highlighted disparities in lending rates between large corporations and small businesses, pointing out that smaller enterprises face disproportionately higher borrowing costs. The minister emphasized the significance of improving credit access for small firms, prioritizing this over policy rate adjustments.
Looking ahead, Pichai indicated that the central bank’s upcoming rate review is scheduled for October 16. He stressed the need for more appropriate interest rates for the public, underlining the importance of addressing the current discrepancies for a more balanced borrowing environment.
