BOT cuts key interest rate by 0.25%

BANGKOK, March 11 (TNA) - The Bank of Thailand (BOT) has cut its key interest rate by 0.25 per cent, from 2 per cent to 1.75 per cent, with immediate effect, making the country's key interest rate become the lowest in the Association of Southeast Asian Nations (ASEAN). BOT Assistant Governor for Monetary Policy Mathee Supapongse told journalists of the surprise move on Wednesday, after the latest meeting of the central bank's Monetary Policy Committee (MPC), during which the decision was made with the majority vote, aimed to help stimulate the national economy. Mathee explained that the Thai economy had slowly recovered in the fourth quarter of 2014 and in January 2015, while domestic consumption and investment had also dropped, together with confidence of the local private sector. According to the BOT assistant governor, MPC viewed that Thailand's economic recovery has been weaker than expected, while stimulation in the local financial sector should take times and the headline inflation would remain low for a certain period. The BOT assistant governor revealed that MPC hoped its latest resolution on cutting the central bank's repurchase rate, to its lowest level in four years and seven months, should help stimulate domestic consumption and investment although the rate cut may have weak impacts on local commercial banks' interest rates as other economic mechanisms cannot function well. (TNA)