Bangkok: The government is advancing with economic stimulus measures, anticipating GDP growth in the first quarter. The initiative includes a policy for reducing interest rates on loans by up to 0.25%, aimed at increasing liquidity for entrepreneurs and alleviating the public's debt burden.
According to Thai News Agency, Ms. Sasikarn Wattanachan, the deputy government spokeswoman, disclosed that the government is encouraging interest rate reduction measures to continually lower financial costs for the populace. In response, four state-owned specialized banks have announced interest rate reductions following the Monetary Policy Committee's decision to decrease the policy interest rate by 0.25% per year. This move is intended to stabilize the financial environment to support economic expansion.
The Government Savings Bank has announced a 0.25% per year reduction in both the MLR and MOR loan interest rates, effective from March 5 to August 31, 2025, or until further notice. Similarly, the Government Housing Bank has reduced its MLR by 0.10% and its MOR by 0.25% per year, also effective from March 5 to August 31, 2025. The Bank for Agriculture and Agricultural Cooperatives has adjusted its lending rates, reducing the MRR by 0.15% and the MOR by 0.25% per annum, effective from March 7, 2025. Lastly, the Export-Import Bank of Thailand has reduced its Prime Rate by 0.10% per year, effective from March 10, 2025.
Ms. Sasikarn emphasized that these interest rate cuts by state banks underscore the government's determination to ease debt burdens and stimulate the economy by enhancing liquidity for SMEs. The government's broader financial strategies include low-interest loans and other economic stimulus measures aimed at fostering steady and sustainable growth. Ms. Sasikarn expressed confidence that GDP will continue to grow in the first quarter of this year.