Government Housing Bank (GH Bank) and Government Savings Bank (GSB) will begin gradually raising their loan interest rates next year, in line with the upward overall trend, according to executives.
Both state-owned banks have committed to holding loan rates steady until the end of this year to mitigate the impact of higher interest on borrowers after the Bank of Thailand raised the policy rate in August and September to the current 1%.
GH Bank president Chatchai Sirilai said the bank would begin increasing loan rates next year on a gradual basis.
The bank's rates will be closer to market rates by the middle of next year, he said.
The bank will hold loan rates steady until the end of this year and already raised deposit rates after the central bank's rate hike, said Mr Chatchai.
Maintaining the loan rates will result in costs of 1.9 billion baht from rising financial costs, he said.
Mr Chatchai said if the Monetary Policy Committee raises the policy rate again at its meeting on Nov 30, it would add more costs for GH Bank.
However, the bank will continue to hold loan rates steady until the end of this year, he said.
GSB president Vitai Ratanakorn said the bank would begin raising loan rates in January next year, in line with the market situation.
He said GSB raised fixed deposit rates following the central bank's rate hike.
Mr Vitai said he expects the bank's customers to be able to deal with the interest rate increase.