BoT urged to cut policy rate
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Deputy Prime Minister Kittirat Na-Ranong has urged the Bank of Thailand to further cut the policy rate in order to support flood-affected businesses and boost the economy.
’I don’t agree with the central bank’s Monetary Policy Committee decision at the previous meeting, whereby the rate was cut only by 25 basis points. It’s too small in light of the severe flooding," he said at a seminar entitled "’Reinvent Thailand" hosted by Krungthep Thurakij newspaper.
He said that a further rate cut would help businesses to cope with higher labour costs, as the minimum wage of Bt300 per day will take effect on April 1.
The wage hike will boost consumption and the economy. As such, businesses should support the policy, he said.
