Thailand’s Central Bank Cuts Interest Rate

[Jacob Maslow]

In a surprising move, Thailand’s Central Bank announced that it will be cutting interest rates. The Bank of Thailand announced on Wednesday that it will lower its one-day bond repurchase rates by a quarter, down to 1.5 percent.

The news caused the value of the baht to fall 0.6 percent, and the benchmark SET fell 1.2 percent.

The move comes as a surprise because lowering interest rates will cause the value of the baht to weaken. However, lower interest rates will help boost consumer and business confidence in the country. Thailand expects exports to contract and has already lowered its forecasted GDP growth from 3.9 percent down to 3.7 percent for the year.

Members of the monetary policy committee voted 5-to-2 in favor of lower interest rates. The bank said that inflation is lower-than-expected, but that the strength of the baht is causing higher risks for exports.

There will be a briefing on Thursday that will discuss further rules to control outflows.

The Finance Ministry also lowered export growth forecasts today to just 0.2 percent in 2015. Original forecasts had the country’s exports growing by 1.4 percent. Uncertainty in the global economy is to blame for lower exports. The country expects the economy to rebound in the second half of the year.

-- 2015-04-30

[jerojero]

Finally some common sense monetary policy. Exports may just stop declining so fast now.

[worgeordie]

All major countries seem to have very low interest rates,and

all I can see is these same countries and their populations

taking on more debt than the mountains of debt they already

have.

While recent reports say that the very wealthy are just getting

richer year by year,while at the same time the poorest are just

drowning in debit, so who are the benefactors of these very low

interest rates? as there are always winners and losers

regards Worgeordie

[useronthenet]

Quote "Uncertainty in the global economy is to blame for lower exports" ... really? It wouldn't be due to the complete lack of competence of those in power.

You can manipulate the economy as much as you want, but it won't change the fact that the numbers speak for themselves. The problem squarely lies within, the lack of foresight, and complete disregard of the warning signs, have got you into this mess.

It's time to change, and bring the country to the 21st century. Putting the blame on others will not solve the problem.