ID :
54488
Wed, 04/08/2009 - 17:43
Auther :
Shortlink :
http://m.oananews.org//node/54488
The shortlink copeid
Thai central bank cuts policy interest rate by 25 basis points
BANGKOK, April 8 (TNA) - The Bank of Thailand (BoT) on Wednesday cut its key interest rate by 25 basis points to 1.25 per cent in an attempt to help boost Thailand’s domestic economy after finding that current global economic meltdown is much more severe than earlier thought, according to BoT Assistant Governor Duangmanee Vongpradhip.
The cut became effective immediately and the cut was necessary because of the uncertainty of the world economy, Ms. Duangmanee.
Until the present action, the BoT Monetary Policy Committee since December lowered the policy interest rate three times with a combined total of 225 basis points. The highest cut was in December when it slashed interest rates by 100 basis points, the steepest cut since 2000 when Thailand adopted the current inflation targeting policy.
Those cuts had also forced commercial banks to lower their rates, both borrowing and lending, by about 70 basis points, Ms. Duangmanee said. It is expected that commercial banks would lower their rates later and the cutting level would depend on their capitals.
Regarding the ongoing protest against the coalition government of Prime Minister Abhisit Vejjajiva, she said she believed that if it was prolonged, it could erode consumer and investor confidence and eventually delay planned investments by the government on infrastructure projects.
Government disbursement will also be delayed and Thai economy could suffer contraction more than earlier projection, she said, adding that the country’s economy would definitely contract in 2009. (TNA)
The cut became effective immediately and the cut was necessary because of the uncertainty of the world economy, Ms. Duangmanee.
Until the present action, the BoT Monetary Policy Committee since December lowered the policy interest rate three times with a combined total of 225 basis points. The highest cut was in December when it slashed interest rates by 100 basis points, the steepest cut since 2000 when Thailand adopted the current inflation targeting policy.
Those cuts had also forced commercial banks to lower their rates, both borrowing and lending, by about 70 basis points, Ms. Duangmanee said. It is expected that commercial banks would lower their rates later and the cutting level would depend on their capitals.
Regarding the ongoing protest against the coalition government of Prime Minister Abhisit Vejjajiva, she said she believed that if it was prolonged, it could erode consumer and investor confidence and eventually delay planned investments by the government on infrastructure projects.
Government disbursement will also be delayed and Thai economy could suffer contraction more than earlier projection, she said, adding that the country’s economy would definitely contract in 2009. (TNA)
