Thai policy rate maintained at 3.75%

 Bank of Thailand (BOT) Assistant Governor Duangmanee Vongpradhip said that the decision is based on the decline in domestic and overseas demand. Yet, there are growing risks in terms of domestic politics and the US financial crisis. Though inflation has eased, but the risk remains as manufacturers could gradually adjust their product prices.

 "We will closely monitor the global situation and stand ready to take actions if the impacts are greater than anticipated," Duangmanee said.

 The Australian central bank on Tuesday slashed the policy rate by a percentage point, and the Hong Kong Monetary Authority also adopted a similarly steep cut on Wednesday.