Wednesday April 12, 12:44 PM
Thai Bk of Ayudhya Ups Lending, Deposit Rates By 25-50BPs
BANGKOK (Dow Jones)--Thailand's Bank of Ayudhya PCL (BAY.TH) said Wednesday it was raising its lending rates by 25 basis points and deposit rates by 25-50 basis points, effective immediately.
The bank's larger rival, Siam Commercial Bank PCL (SCB.TH), announced Monday it would raise its rates by 25 basis points. The move triggered the latest round of commercial banks' rate hikes after the central bank Monday raised its policy 14-day repurchase rate by 25 basis points to 4.75%.
Bank of Ayudhya senior executive Charlotte Donavanik said Wednesday that the bank's interest rates for fixed-term three-month deposit accounts have risen to 3.25%-4.25%, those for a six-month accounts to 3.50%-4.50% and the rates for 12-month accounts to 4%-4.75%. The rate on its 24-month account has increased to 4.50%.
The bank's prime lending rate, locally known as minimum lending rate, has risen to 7.75%, the minimum overdraft rate to 8.25% and the minimum retail rate also to 8.25%, the executive said.
Thai Bk of Ayudhya Ups Lending, Deposit Rates By 25-50BPs
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Thai Bk of Ayudhya Ups Lending, Deposit Rates By 25-50BPs
"I don't often agree with the RSPCA as i believe it is an animals duty to be on my plate at supper time"
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Thai baht hits six-year high against dollar
The Thai currency has jumped to a six-year high against the dollar on surging foreign demand, sparking concern that the rising baht would hurt competitiveness of the country's exports.
The Thai baht stood at 38.06 to the greenback in afternoon trade, against 37.90-38.00 earlier in the day. It was quoted at 46.37-75 to the euro.
"The currency got a boost due to strong demand from foreign investors. Foreigners were buying up Thai assets and equities," said Kitti Nathisuwan, a senior economist at Macquarie Research Equities.
Kitti said demand for the Thai baht surged particularly after the central bank on Monday raised its key interest rate to 4.75 percent, the highest level since 2000, in a bid to tame inflation.
The Thai currency also gained ground against the dollar as investors dumped the greenback amid concerns over a possible US military strike against Iran, he added.
"All these factors added to support the Thai baht. If it continues to rise further, Thai exports would lose competitiveness in overseas markets," Kitti said.
"If there is no intervention by the Bank of Thailand, the currency could go up to the 36 baht level. But I don't think authorities would let that happen," he said.
The finance ministry and the Bank of Thailand will hold a meeting next week to discuss the rising local currency, a central bank official said. Thailand enters a long Buddhist new year holiday starting from Thursday.
The strong baht makes Thai exports less competitive in overseas markets and lowers the value of companies' repatriated profits.
Exports are the driving force of the Thai economy as they account for 60 percent of the country's gross domestic product (GDP).
The Federation of Thai Industries, the country's largest business lobby group, said food and textile exporters were already under pressure due to the rising baht and urged authorities' intervention to halt the currency rise.
"The baht is too strong and likely to further strengthen in line with other regional currencies," Santi Vilassakdanond, vice chairman of the federation, told AFP.
"The government should step in to help exporters. Otherwise, the overall economy would be affected," Santi said, adding Thai exporters make business plans based on their forecast of the currency trading 39-40 baht to the dollar.
Somsak Paneethatyasai, president of the Thai Shrimp Association, said the strong baht had already trimmed the value of overseas contracts by seven percent.
"Exporters have suffered as the baht has kept going up in the past two months. It's time for the government to intervene in the currency market as the baht is too strong right now," Somsak said.
Thailand is the world's largest shrimp exporter with a total of 280,000 tonnes worth 70 billion baht (1.8 billion dollars) shipped overseas in 2005
The Thai currency has jumped to a six-year high against the dollar on surging foreign demand, sparking concern that the rising baht would hurt competitiveness of the country's exports.
The Thai baht stood at 38.06 to the greenback in afternoon trade, against 37.90-38.00 earlier in the day. It was quoted at 46.37-75 to the euro.
"The currency got a boost due to strong demand from foreign investors. Foreigners were buying up Thai assets and equities," said Kitti Nathisuwan, a senior economist at Macquarie Research Equities.
Kitti said demand for the Thai baht surged particularly after the central bank on Monday raised its key interest rate to 4.75 percent, the highest level since 2000, in a bid to tame inflation.
The Thai currency also gained ground against the dollar as investors dumped the greenback amid concerns over a possible US military strike against Iran, he added.
"All these factors added to support the Thai baht. If it continues to rise further, Thai exports would lose competitiveness in overseas markets," Kitti said.
"If there is no intervention by the Bank of Thailand, the currency could go up to the 36 baht level. But I don't think authorities would let that happen," he said.
The finance ministry and the Bank of Thailand will hold a meeting next week to discuss the rising local currency, a central bank official said. Thailand enters a long Buddhist new year holiday starting from Thursday.
The strong baht makes Thai exports less competitive in overseas markets and lowers the value of companies' repatriated profits.
Exports are the driving force of the Thai economy as they account for 60 percent of the country's gross domestic product (GDP).
The Federation of Thai Industries, the country's largest business lobby group, said food and textile exporters were already under pressure due to the rising baht and urged authorities' intervention to halt the currency rise.
"The baht is too strong and likely to further strengthen in line with other regional currencies," Santi Vilassakdanond, vice chairman of the federation, told AFP.
"The government should step in to help exporters. Otherwise, the overall economy would be affected," Santi said, adding Thai exporters make business plans based on their forecast of the currency trading 39-40 baht to the dollar.
Somsak Paneethatyasai, president of the Thai Shrimp Association, said the strong baht had already trimmed the value of overseas contracts by seven percent.
"Exporters have suffered as the baht has kept going up in the past two months. It's time for the government to intervene in the currency market as the baht is too strong right now," Somsak said.
Thailand is the world's largest shrimp exporter with a total of 280,000 tonnes worth 70 billion baht (1.8 billion dollars) shipped overseas in 2005
"I don't often agree with the RSPCA as i believe it is an animals duty to be on my plate at supper time"
