Policy rate slashed by half percentage point
The Monetary Policy Committee resolved to slash the policy rate by half a percentage point, despite private companies' call for a sharper cut to quickly revive sagging confidence among investors and consumers.
The policy rate now stays at 4 per cent.Suchada Kirakul, assistant governor of the Bank of Thailand, attributed the half a percentage point cut to the slowing demand amid low inflation pressure. "However, if it is cut by over 50 basis points, it could be too a strong monetary measure," she said. Ahead of the meeting Wednesday, the Bank of Thailand had been urged to slash the rate by a percentage point, amid concerns over slow budget disbursement so far this year as well as the lower-than-expected government revenue collection. Meanwhile, the Finance Ministry has been criticised of running too low budget deficit to boost domestic demand. The Nation
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