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Domestic interest rates to begin rising, says banker
Thailand’s domestic interest rates are likely to start
edging up, fuelled by government plans to issue bonds to raise around Bt300
billion early next year, according to a top banker.
Speaking during a function held to mark the 56th anniversary of the
establishment of the Government Housings Bank, its president Khan
Prachuabmoh said the bond issue might cause interest rates to climb as some
depositors choose to withdraw their money from banks to buy bonds offering
higher yields.
However, he did not believe the interest rate would increase considerably,
so he sees it to be an appropriate time for prospective real property buyers
to decide on house purchases.
Regarding housing loans extended under the fast track loan project, he said
the bank had already approved the provision of over one billion baht. It is
expected the remaining loans would be completely extended as targeted in the
rest of this year because the public preferred to make decisions on home
ownership transfer at the year end, he said. (TNA)
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