NPLs on the rise: BOT Govenor

 However, she insisted that due to tight restrictions, Thai banks are resilient to growing NPLs. She also noted that if the economy heads up, the NPLs would fall.

 "Overall, new loan extension would fall which is normal under this economic condition. Now, new loans are mostly extended to cover inventory management," she said.

 She also noted that the Monetary Policy Committee is committed to further relax the monetary policies to boost the economy. Yet, she cautioned that though lower rates would help reduce the financial cost of operators, they may not stimulate spending or investment without other favourable factors.

 The governor also opined that in the long term, interest rates could rise as the government is to issue bonds to finance its budget deficits.