State banks urged to cut loan rates to stimulate economy

State banks are urged to lower their lending rates to stimulate economy.

The call for lower lending rates was made by the director of the Economic and Business Forecast Center at the University of the Thai Chamber of Commerce (UTCC), Mr. Thanawat Polwichai.

Mr Thanawat said UTCC remained confident of the economic growth with its forecasted 4% economic growth for this year although several state and private think tanks have adjusted their projections down to nearly 3%.

He said with confidence that the lowering of interest rate would help boost economy and ease the business sector’s financial burden.

He said a cut of lending rate by 0.1 percent could help the business sector to save 10 billion baht a year in operating cost.