HSBC foresees interest rate stability

BANGKOK, 6 January 2010 (NNT) – The Hongkong and Shanghai Banking Corporation Thailand (HSBC Thailand) has foreseen a stability of interest rates in the first six months of this year and a potential increase of 0.5% in the third and fourth quarter.

HSBC Personal Financial Services Head Wichit Phayuhanaveechai expected that the interest rate would be increased by 0.5% in the latter half of this year after being stable through the first half. He announced that his bank would be ready to increase the interest rate immediately upon the decision of the monetary policy committee in order to maintain its market share.

The division head believed that the personal loan market this year would become lively again with a projection of 20% growth from the total loan of 200 billion THB. He expected that the bank’s personal loans this year would grow by 50%.

MR Wichit reasoned that the improving economy, the increasing confidence of consumers, and stimulus packages of the government were the main contributors to the growth. He however admitted his concerns over political problems and other factors influencing the economic growth.