BOT urged to cut key interest rate

BANGKOK, August 8 (TNA) - Deputy Prime Minister and Finance Minister Kittirat Na-Ranong has signaled the Bank of Thailand (BOT) to further cut its key interest rate to stimulate domestic investment. Kittirat told journalists Wednesday that he wants the central bank to cut its repurchase rate to 2.5 per cent, from 3 per cent currently, to not only propel domestic investment, but also weaken the baht to boost Thai exports. Kittirat acknowledged that the Thai government will also try to speed up mega investment projects and to make a balanced state budget as soon as possible although the 2012 fiscal budget remains a deficit of about 400 billion baht. Meanwhile, Virabongsa Ramangkura, chair of the BOT board, also urged the government to speed up infrastructure projects at Tuesday's dinner talks in Bangkok on impacts of the Thai and global economies, saying that Thailand has not invested in such the mega projects for as long as 15 years, and that the government appears to have no problem with finances to fund the projects, as the country's foreign-exchange reserves and domestic savings remain huge. Virabongsa also urged the BOT to support national economic growth, instead of focusing on inflation control. (TNA)