BOT cuts key interest rate by 0.25%

BNAKOKG, May 30 (NTA) - The Bank of Thailand (BOT) has decided to cut its key interest rate by 0.25 per cent, from 2.75 per cent to 2.50 per cent, to prevent a slowdown of the national economy. The BOT's Monetary Policy Committee or MPC made the decision at its latest meeting on Wednesday. Thanavat Polvichai, Director of the Center for Economic and Business Forecasting of Bangkok-based University of the Thai Chamber of Commerce, suggested, meanwhile, that the BOT's policy interest rate reduction suit the national economic growth in the first quarter of this year. Thanavat assessed that the Thai economy may slow down in the second quarter of this year if there is no action, based on the fiscal policy, taken. Besides, the senior economist acknowledged that the 0.25 per cent cut in the central bank's key interest rate is considered a slight change, allowing authorities concerned to wait and further see the overall situation of the Thai economy, and that central banks of many other countries have also used their key interest rates to stimulate their national economies. According to the leading Thai economist, the latest change of the BOT's policy or repurchase rate should benefit the national economy, would not breach financial disciplines and would prompt depositors to spend and, thus, stimulate the Thai economy. The senior economist said he believes that the BOT's MPC has its good reason for its Wednesday's decision, aimed at upholding national interest, amid the vulnerable global economy. (TNA)