Further benchmark rate reduction would stimulate local economy


BANGKOK, 8 June 2015, President of the Association and Thai Chamber of Commerce Advisor Phonsilp Patcharintanakul said he believes reducing benchmark rate further would help stimulate the local economy.

The comment was made ahead of the next Monetary Policy Committee (MPC) meeting on June 10. The MPC previously decreased the rate by 0.25 percent in both of its previous two meeting. Currently, the interest rate stands at 1.5 percent.

Mr. Phonsilp supports another decrease by 0.25 percent, claiming it would boost economic performance and improve consumer confidence. Records show that the Consumer Confidence Index in May reached an 11-month low.

Mr. Phonsilp forecast that the export sector would improve within the next 3 – 6 months, speculating that the sector would expand 1-2 percent.