Thai central bank chief: big rate cuts won't help economy amid unrest
Published on Apr 1, 2014 4:14 PM
BANGKOK (REUTERS) - Thailand's central bank chief said on Tuesday any big interest rate cut would not help revive the economy hit by political unrest, but monetary policy would remain accommodative to support businesses.
Bank of Thailand Governor Prasarn Trairatvorakul told the Senate's financial commission the recent rate cut might only help sentiment. "Monetary policy is not cure-all medicine. It can help but it can't replace others," he said.
On March 12, the central bank's monetary policy committee voted 4-3 to cut the benchmark rate by 25 basis points to 2.0 per cent to boost confidence and spur spending.
Three members voted to hold, arguing that the current rate remained accommodative and the main headwinds to growth were not financial.
To continue reading, log in if you are a subscriber
Enjoy 2 weeks of unlimited digital access to The Straits Times. Get your free access now!