Mr. Chatchai Sirilai Managing Director The Government Housing Bank (GHB) said that the Board of Directors had a meeting to plan the direction of raising interest rates. Initially, it is estimated that the remaining three meetings of the Monetary Policy Committee (MPC) this year are expected to raise the policy rate at least 2 times by 0.25% each, for a total of 0.50%. By raising the policy interest rate by at least 0.50% per annum in 66, it is estimated that during the next two years there will be a policy rate hike of about 1%.
“At the MPC meeting for the month of Aug. 65, if there is a resolution to raise the policy rate The bank was pegged until October by raising interest rates for the first time. and this year’s one-time average of 0.125%-0.150% per annum, the rest is expected that the bank will gradually increase in the first quarter of 2016.”
Mr Chatchai said
Mr. Chatchai admitted that raising the MPC’s policy interest rate had an impact on the Bank of Thailand’s costs because it had to raise interest rates immediately. As for the interest rate on the loan It depends on how each bank considers cost management. This year, there are still 5 months left, but from the estimates, it is expected that the interest rate fixation to help and reduce the burden on the people will increase the cost of this year by about 1,000 million baht. In the year 66 it is expected that will affect approximately 1,300 million baht
However, despite the increase in loan interest rates But the customer’s annuity will not increase immediately. If still paying interest and still have some money to write off the principal But in the event that the interest rate rises to a very smooth level, the annuity is not enough to deduct the principal. It has to be an installment. or paid under the same installment but cut the principal less than before This approach will cause the need to extend the annuity to a longer term.
Managing Director of GH Bank views that the interest rate hike this time It will affect the customers in the vulnerable group who want to recover their homes. But the base salary is not very high, for example, a salary of 20,000 baht, wanting a home loan for 3,000,000 baht, the bank may have to reduce the loan amount. As a result, such vulnerable groups have a harder time finding the homes they need. while the group has the ability to recover the original They will approach the bank to select a loan package that can pay off without more problems.
By InfoQuest News Agency (23 Jun 65)
Tags: home loan, Chatchai Sirilai, Government Housing Bank, GH Bank
