The Bank Of Thailand is probably going to cut interest rates during its next meeting, on december 3 (read here), like many other central banks around the world.
Time to update the chart of… real interest rate (= BOT repurchase rate minus CPI).
It’s going up… But, it’s important to note that the decrease of the CPI (Consumer Price Index, at +3,9 % in october) is a little bit artificial (since august, we have the special “rescue package” decided by Samak, with heavy tax cuts on diesel, and other goodies… for 6 months, read here).
Right now, the repurchase rate is 3,75 %. The BOT could cut probably 0,50. Therefore, we will stay in negative territory.
Now, let’s have a look at the “real life”… What is the interest rate you would pay at your bank ? Here is an update of the MLR (Minimum Lending Rate) at the Bangkok Bank. Why the Bangkok Bank ? Because it’s the biggest thai bank.