December 3, 2008
BANGKOK (AFP) - The Bank of Thailand Wednesday cut interest rates by 100 basis points to 2.75 percent in a bid to boost the economy amid domestic political turmoil and the global financial crisis, an official said.
The cut was the biggest since 2000 when Thailand adopted the current inflation targeting policy and the first reduction this year, the central bank said.
"The Monetary Policy Committee wanted to ease monetary policy to boost economic recovery, especially amid the negative risk both domestically and overseas," bank deputy governor Duongmanee Vongpradhip.
"Therefore the committee agreed to cut interest rates by 1.0 percent to 2.75 percent per annum."
The bank said the global economic crisis had affected industrial countries more than they had expected and it also affected exports from regional countries.
Data at the end of the third quarter ending in October showed the Thai economy experienced a sudden slowdown, coupled with limited government stimulus due to internal political problems, the bank said.
"Political problems in Thailand have increased the risk for the economy in terms of confidence and (the) tourism sector," said Duongmanee, who is also the bank's director of monetary policy.
