Central bank cuts prime rate

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From Reuters

BANGKOK (Reuters) - Thailand’s central bank unexpectedly cut its benchmark interest rate for a third time in six months on Wednesday, taking it to a record low as a virus spreading from China puts further pressure on the struggling economy.

The Bank of Thailand’s (BOT) monetary policy committee voted unanimously to cut the one-day repurchase rate THCBIR=ECI by 25 basis point to a fresh record low of 1.0%, the lowest in Asia outside of Japan.

“The Committee viewed that the Thai economy would expand at a slower rate in 2020 than previously forecasted and much further below its potential,” the MPC said in a statement.

The virus outbreak, a drought and a delay in passing the fiscal budget would affect a large number of businesses and employment, it said.

Analysts say potential growth shocks emanating from China are raising the chances of further central bank policy easing in Asia.

https://www.reuters.com/article/us-thailand-economy-rates-idUSKBN1ZZ105

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From Bangkok Post

BoT cuts key rate to 0.50%

The Bank of Thailand cut its policy rate by 25 basis points to a record low of 0.50% on Wednesday, to help soften the economic impact of the pandemic and social distancing measures.

The central bank's Monetary Policy Committee (MPC) voted 4-3 at Wednesday's meeting to lower the one-day repurchase rate, with the three dissenters preferring a steady rate.

It was the fifth cut since August last year. The MPC had kept the rate steady at its last meeting after a 25-basis-point cut at an emergency meeting on March 20.

"The Thai economy is likely to contract at a deeper pace than previously predicted and the committee considered that the right relief measures, launched in a timely manner, will help cushion some impacts," MPC secretary Titanun Mallikamas said.

The economy is heading for recession after shrinking 1.8% year-on-year in the first quarter, the deepest contraction since the flood-hit fourth quarter of 2011.