BANGKOK - Thailand's central bank cut its benchmark interest for a second time this year on Wednesday , stepping up efforts to bolster its economy as exports will likely take a bigger hit from the US-China trade war.
The Bank of Thailand's monetary policy committee voted 5-2 to cut the one-day repurchase rate by 25 basis points to 1.25 per cent, a record low last seen during the global financial crisis.A slim majority of economists - 15 out of 28 - polled by Reuters had predicted no policy change, while the rest forecast a 25 basis-point cut.
Capital Economics expects the central bank will cut once more this cycle, with rates being lowered to just 1 per cent. A month later, the central bank cut its growth forecast for this year to 2.8 per cent from 3.3 per cent, and next year's outlook to 3.3 per cent from 3.7 per cent. Last year's growth was 4.1 per cent. Exports, a key driver of economic growth, was expected shrink 1 per cent this year.
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Source: The Straits Times - 🏆 8. / 63 Read more »