Bangkok Bank has announced that it will raise its deposit and loan interest rates effective from Friday.
The decision is in line with expectations that the Thai economy will continue to expand, said Suvarn Thansathit, a senior executive vice-president of the bank.
The move follows the decision on Wednesday by the Bank of Thailand to raise its policy interest rate by another 25 basis points to 2.50%, the highest in 10 years. Other lenders are expected to start raising their rates as well.
Bangkok Bank said its deposit interest rates would increase by between 10 and 25 basis points, to a maximum of 0.55% per year.
E-Savings deposits under 1 million baht will pay 1.50% per year and those over 1 million baht will pay 0.65% per year.
A new rate of 1.20% per year will apply to 3-month fixed deposits, 1.25% for 6-month deposits, 1.60% for 12 months, 2.00% for 24 months and 2.10% for 36-month fixed deposits.
Loan interest rates will be increased by 25 basis points, with the new minimum loan rate (MLR) at 7.10% per year, minimum overdraft rate (MOR) at 7.55% and the minimum retail rate (MRR) at 7.30% per year.