Banks have announced they will increase both loan and deposit rates in response to the Bank of Thailand's (BoT) monetary policy direction, following the decision by the central bank last week to raise its policy rate by a quarter of a percentage point.
Banks are attempting to attract depositors by offering special rates for digital savings products.
Siam Commercial Bank (SCB) responded to the central bank's policy rate hike by raising its prime loan rate by a quarter of a percentage point, effective as of Tuesday.
The bank also increased all types of loan rates which included the minimum retail rate (MRR) which now stands at 7.3% per year, the minimum loan rate (MLR) which now stands at 7.05% per year and the minimum overdraft rate (MOR) which now stands at 7.575%.
The bank increased loan rates, as a policy rate pass-through, which reflects higher financial costs and is in line with the rising rates of peers across the industry, SCB chief executive Kris Chantanotoke said in a statement.
SCB, the country's fourth-largest lender by total assets, also raised deposit rates by 0.3% at the maximum.
The bank also hiked digital saving rates by 0.1-0.3% to attract depositors under its business strategy called "digital bank with a human touch".
Last Wednesday, the Bank of Thailand's Monetary Policy Committee (MPC) raised its benchmark interest rate by a quarter of a percentage point to 2.5%, which is the highest level in a decade.
Economists expect this will be the end of the rate hike cycle after the MPC said it would maintain the policy rate at the existing level for a while.
TMBThanachart Bank (ttb) raised its MLR, MOR and MRR by a quarter of a percentage point each.
The bank also increased its deposit rate for specific deposit accounts, and increased the digital saving rate to its highest level at 2.2% per annum.
Chief executive Piti Tantakasem said ttb's interest rate movement is in line with the central bank's policy rate hike.
The bank continuously responds to the monetary policy direction of the central bank in maintaining sustainable economic growth, medium-term price stability and financial stability, ttb said.
However, ttb continues to help vulnerable customers in long-term debt restructuring.
Bangkok Bank (BBL), the country's largest lender by total assets, followed the policy rate movement by increasing both deposit and loan rates.
The bank has increased all types of loan rates by a quarter of a percentage point per year which includes MRR at 7.30%, MLR at 7.10% and MOR at 7.55%.
BBL increased its deposit rates by 0.10-0.25% which include savings deposit at 0.55% and e-savings deposits in a range of 0.65-1.5%.
In related news, Kasikornbank (KBank) informed the Stock Exchange of Thailand (SET) on Monday of the appointment of Rungruang Sukkirdkijpiboon as president and executive director to fill a vacant position, effective as of Oct 11.
Mr Rungruang is one of KBank's co-presidents, along with Pipit Aneaknithi, Pipatpong Poshyanonda and Chongrak Rattanapian who was promoted on Aug 1 from his previous position of chief finance officer.