BOT urged to cut key interest rate

BANGKOK, April 24 (TNA) - The Federation of Thai Industries (FTI) has urged the Bank of Thailand or BOT to cut its policy interest rate, or the repurchase rate, to weaken the Thai baht and to, thus, boost Thai exports. FTI Chairman Payungsak Chartsuthipol told reporters that FTI executives and members are scheduled to hold a meeting on Wednesday to discuss impacts of the ongoing strong Thai baht on the country's exports and requests for the government's assistance. Payungsak said that results of Wednesday's FTI meeting will then be raised at its meeting with Thai Commerce Minister Boonsong Teriyapirom on April 26, 2013. The FTI chair called for the BOT to revise its interest policy, from focusing on inflation management to addressing the ongoing baht appreciation, because the world economic situation appears not to be normal as all countries are injecting money to stimulate their economies. The FTI chief acknowledged that the FTI has sought a meeting with BOT Governor Prasarn Trairatvorakul, to be held either later this week or next week, pointing out that high interest rates in Thailand have attracted capital inflows mainly to bonds and partly to the Stock Exchange of Thailand (SET). The FTI chief proposed that the BOT cut its key policy interest rate or the repurchase rate by 1 per cent, from 2.75 per cent currently. (TNA)