On March 4, 2025, key financial institutions across Thailand announced significant reductions to their lending rates, aiming to alleviate financial burdens on consumers and stimulate the national economy. Among these institutions, the Export-Import Bank of Thailand (EXIM Bank), Government Housing Bank (GHB), and Krungsri are making noteworthy adjustments reflecting broader economic trends.
Dr. Rak Vorrakitpokatorn, the General Manager of EXIM Bank, revealed the bank's decision to lower its Prime Rate by 0.10%, reducing it to 6.25% per year, effective April 10, 2025. This move aligns with the recent decision by the Monetary Policy Committee (MPC) to lower its policy interest rate by 0.25% to promote economic stability and growth. Dr. Rak emphasized, "The adjustment of the Prime Rate aims to alleviate the financial burden of entrepreneurs, especially SMEs, as we strive to support Thai businesses to thrive amid global challenges."
EXIM Bank’s revised rate is set to benefit both regular and SME customers, as it aligns closely with commercial banks' Minimum Retail Rate (MRR), enabling competitive lending conditions across the market. This measure is seen as integral to sustaining liquidity among businesses and facilitating sustainable trade operations as the Thai economy continues to navigate its sluggish growth.
Following closely, the Government Housing Bank (GHB) also made headlines on the same day. Senior Executive Vice President Komolphop Weerathapala announced reduced rates for its lending products, highlighting the bank's role as a bulwark against the financial challenges facing its clientele. The MLR, or Minimum Loan Rate, has been cut by 0.10%, dropping from 6.250% to 6.150%, with the MOR, or Minimum Overdraft Rate, decreasing 0.25% from 6.40% to 6.15%. These changes will take effect from April 5, 2025. "We have focused on supporting all customer groups, especially those with lower incomes, to improve their quality of life by ensuring they can afford housing," said Weerathapala.
Notably, GHB decided to maintain its MRR unchanged at 6.545% per year, justifying past reductions to keep offerings competitive. The bank is committed to ensuring customers receive the most benefit from their savings with plans to preserve deposit rates as long as feasibly possible.
Kicking off the trend, Krungsri, formally known as Bank of Ayudhya Public Company Limited, also announced adjustments to lending rates on March 4, giving weight to the overall response from Thailand’s banking sector to shifting economic conditions. Effective from April 7, 2025, the bank's MLR will decrease from 7.155% to 7.055%, MOR from 7.325% to 7.075%, and MRR from 7.275% to 7.175%. Mr. Kenichi Yamato, the Managing Executive Officer of Krungsri, stated: "We recognize the importance of supporting the Thai economy. Reducing financial burdens on retail customers and helping businesses reduce their operating costs is our primary focus during these challenging times."
Collectively, these interest rate reductions across multiple banks mark significant steps toward supporting economic growth at various levels. By lightening the financial load for consumers and businesses, Thailand's financial institutions are aligning their operations with government policy aimed at enhancing economic resilience. The concerted effort by EXIM Bank, GHB, and Krungsri signifies mutual acknowledgment of the challenges faced by borrowers, particularly as the nation grapples with diminishing economic growth and heightened international trade tensions.
The banks reiterated their commitment to assist vulnerable customer groups and provide necessary financial support for sustaining households and businesses throughout these trying economic conditions. With momentum building around these financial adjustments, stakeholders are hopeful about fostering renewed economic growth across the country.
These strategic decisions by financial institutions pave the way for increased access to capital and support the continued development of the Thai economy, with banks encouraging consumers to leverage the new, lower rates for housing investment, business development, and more. Customers are urged to engage with their local branches or contact services for additional information on how these changes may benefit their financial activities.