Thai banks' interest rate hikes spark economic concerns

Weaker baht, trade deficit, household debt pose threat as financial costs rise

Bangkok Bank, Thailand's biggest lender, raised its lending rate by 30 to 40 basis points (0.30% to 0.40%) and increased its deposit rate by 15 to 50 basis points on Sept. 29. © Reuters

APORNRATH PHOONPHONGPHIPHAT, Nikkei staff writer

October 6, 2022 11:04 JST

BANGKOK -- Major commercial banks in Thailand have rushed to raise interest rates in response to the Bank of Thailand's two consecutive rate hikes, sparking concern over rising financial costs that will eventually be passed on to businesses and consumers at a time when the Thai economy is still in the recovery stage from the COVID-19 pandemic.