Interest rate hikes since mid-2005 ... impact on direction of Thai banks' net interest income.

(From Thai Press Reports)

Section: Research - The Bank of Thailand raised its benchmark 14-day R/P rate by a larger than expected 50 basis points to 3.25 percent on September 7, 2005. Subsequently, large Thai commercial banks followed suit by lifting their 3-month fixed deposit rates for general customers on September 9 - the first time in almost two years - along with hikes in lending rates. From the end of June 2005 up to the present (September 21, 2005), Thai commercial banks have lifted long-term fixed deposit rates several times. So far, no large commercial banks have been seen adjusting their savings rates higher, yet. Aside from the hefty excess liquidity at several banks, some others with tighter liquidity may want to buy time against paying higher …