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BANGKOK : The Bank of Thailand cut interest rates by a further 75 basis points to 2.0 per cent on Wednesday in a bid to boost economic recovery, an official statement said.
The central bank's assistant governor for monetary policy, Duangmanee Vongpradip, said the bank had agreed to lower the policy rate after inflationary pressure drastically reduced.
In an unprecedented move in December, the bank slashed interest rates by 100 basis points, the steepest cut since 2000 when Thailand adopted the current inflation targeting policy.
"I expect the MPC's (monetary policy committee's) back-to-back steep interest rate cut will help pull the economy from its slowdown, as it makes money cheaper," said Duangmanee.
"Inflation remained low as a result of the significant decline of oil and commodity prices, due to weaker global economic conditions and domestic demand," she said.
She added that the committee "viewed that monetary policy could be eased further to support economic recovery, particularly as the economy continues to face numerous negative risks."
Inflation grew at 0.4 per cent in December, the lowest in more than six years, Duangmanee said, adding that it was possible that inflation would be negative in the next eight quarters due to the global economic downturn.
She said the main stimulus for the economy would be the government's mid-year package of 115 billion baht (3.3 billion dollars), which was approved by the cabinet on Tuesday. - AFP/ms
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