ID :
40694
Wed, 01/14/2009 - 17:28
Auther :
Shortlink :
http://m.oananews.org//node/40694
The shortlink copeid
Thai central bank lowers policy interest rate to 2%
BANGKOK, Jan 14 (TNA) - Realising that there are still risks on Thailand’s economic growth, the Bank of Thailand’s (BoT) Monetary Policy Committee (MPC) on Wednesday reduced its policy interest rate by 75 basis points to 2 per cent annually, said BoT assistant governor Duangmanee Vongpradhip.
Effective immediately, the policy interest rate is further reduced to 2 per cent, the same level applied in January 2005, from 2.75 per cent, after it was found that Thailand’s exports continued declining while consumption and investment also slowed down, said Miss Duangmanee.
She said the government’s decision to inject Bt115 billion supplementary spending budget in 2009 could see results after some time because the disbursements are expected in March or April.
There is need for a monetary policy to help supplement the country's financial policy, which is a key player in stimulating economy, she said, adding that the MPC has to lower its policy interest rate after it had lowered it by 100 basis points since December 3.
The MPC is confident that the cut in policy interest rate would enable the public to spend more and commercial banks would lower interest on loans later, Miss Duangmanee noted.
The real interest rate now stands at 1.6 per cent.
A review of the Thai economy will be made again on January 23 as it has declined more sharper than earlier estimated, she said. The new revision is expected to put economic growth in 2009 at between 0.5-2.5 per cent and inflation to contract after global oil prices had retreated sharply. (TNA)
Effective immediately, the policy interest rate is further reduced to 2 per cent, the same level applied in January 2005, from 2.75 per cent, after it was found that Thailand’s exports continued declining while consumption and investment also slowed down, said Miss Duangmanee.
She said the government’s decision to inject Bt115 billion supplementary spending budget in 2009 could see results after some time because the disbursements are expected in March or April.
There is need for a monetary policy to help supplement the country's financial policy, which is a key player in stimulating economy, she said, adding that the MPC has to lower its policy interest rate after it had lowered it by 100 basis points since December 3.
The MPC is confident that the cut in policy interest rate would enable the public to spend more and commercial banks would lower interest on loans later, Miss Duangmanee noted.
The real interest rate now stands at 1.6 per cent.
A review of the Thai economy will be made again on January 23 as it has declined more sharper than earlier estimated, she said. The new revision is expected to put economic growth in 2009 at between 0.5-2.5 per cent and inflation to contract after global oil prices had retreated sharply. (TNA)
