Thai state banks raise interest rates after central bank policy hike

Following the Bank of Thailand‘s recent policy rate increase, state banks, including the Government Savings Bank (GSB) and the Bank for Agriculture and Agricultural Cooperatives (BAAC), have raised interest rates for loans and deposits, with deposit rates exceeding loan rates.

Vitai Ratanakorn, GSB’s president and chief executive, stated that after the central bank’s policy rate increased by a quarter percentage point from 1.75% to 2% on May 31, GSB raised fixed deposit rates to a maximum of 0.35% per year. The bank has also introduced high-yield deposit campaigns, such as unique deposit products and savings lotteries, which boost both interest and prizes.

GSB increased all loan rates by 0.25% per year on a gradual basis, starting June…