Economic data show no reason yet for further policy rate cut: BOT governor
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The governor of the Bank of Thailand (BOT) sees no immediate need for a further cut in the policy interest rate, while expressing lingering concerns over household debts.
Prasarn Trairatvorakul said the current economic situation, which is seeing capital outflows, does not indicate a necessity for a further rate cut, and other countries in the region have not slashed their benchmark rates yet.
The BOT’s Monetary Policy Committee (MPC) reduced the key rate by 25 basis points to 2.50 per cent at its May 29 meeting. After the move, the yields of short-term bonds reduced, but those of long-term bonds increased, and that led to money-market expectations of no further rate cuts for now.
The Nation
