Thai central bank cuts key interest rate
The Bank of Thailand's Monetary Policy Committee (MPC) on Wednesday (May 20) cut the key interest rate to 0.50 per cent from 0.75 per cent, MPC secretary Titanun Malikamas said.
The committee voted 4-3 for the rate cut, which is effective immediately, in response to economic contraction deeper than previously predicted due to the sharper global contraction, he said.
This is the second time this year the MPC has cut the policy rate.
The MPC had decided unanimously on March 20 to cut the key policy rate by 0.25 of a percentage point, from 1.00 to 0.75 per cent, effective from March 23, to reduce the interest burden on borrowers affected by the Covid-19 outbreak and to alleviate the liquidity strain in the financial markets.
