Bank of Thailand weighs up interest rate changes

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BANGKOK, 22 February 2014 The Bank of Thailand Governor Prasarn Trairatvorakul has revealed after a meeting in Australia, that the Central Bank considers that the current interest rate of 2.25% could be reduced.

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Dr. Prasarn said what is worrying is whether or not reducing interest rates would have a positive impact on the economy, given the nation’s economic slowdown is not related to economic factors but political ones. According to the Bank of Thailand, the economy in the first half of the year remains stable, however, should the caretaker government and the People’s Democratic Reform Committee (PDRC) be able to find a joint solution to the political deadlock, there would be a positive impact on the economy. Several members of the Bank of Thailand’s Monetary Policy Committee are debating whether reducing interest rates would stimulate the nation’s consumption. Lower public consumption is due to political unrest, not monetary issues, reiterated the BOT Governor.