Krungthai Bank Reduces Loan Interest Rates to Aid Economic Recovery

Bangkok: Krungthai Bank has announced a 0.25% reduction in its lending interest rate, aligning with the Bank of Thailand's resolution, as part of an initiative to support all customer groups during challenging economic times. According to Thai News Agency, this move comes in response to the fragile state of the Thai economy, influenced by significant trade regulations leading to new global manufacturing competition. Such changes necessitate both domestic adjustments and reforms to enhance competitiveness and foster national transformation. Mr. Payong Srivanich, President and CEO of Krungthai Bank, highlighted that several countries are implementing measures to assist business sector adjustments in both the short and long term. The Thai economy faces additional structural challenges, including a substantial informal economy and high levels of household debt, creating a "perfect storm" of difficulties. In response, Krungthai Bank is intensifying its efforts to support Thai citizens and businesses in overcom ing these obstacles. The bank's interest rate reduction aims to alleviate financial burdens on individuals, particularly those in vulnerable households, as well as the self-employed and SMEs, thereby enabling businesses and the public to flourish. This interest rate cut is in line with the Monetary Policy Committee's (MPC) interest rate reductions. Specifically, the interest rate for prime corporate customers, overdraft type (MOR), has been decreased to 6.620% per annum. For prime large customers with term loans (MLR), the rate is now 6.500% per annum, while the rate for prime retail customers (MRR) has been adjusted to 7.045% per annum. These changes will take effect on August 15, 2025, with deposit interest rates remaining unchanged.