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Thai Central Bank Aims at Deflation with Interest Rate Cut.
Byline: Parista Yuthamanop
Jul. 3--Last Friday's rate cut by the central bank was aimed at warding off deflation rather than boosting economic growth, said M.R. Pridiyathorn Devakula, governor of the Bank of Thailand.
The Monetary Policy Committee on Friday cut its 14-day repurchase rate by one-half of a point to 1.25 percent.
M.R. Pridiyathorn said yesterday that economic growth in the first half was likely to exceed 5 percent, with growth of 6.7 percent in the first quarter helping compensate for declines in the second quarter.
But he said there were risks for core inflation, which excludes food and energy prices, to fall under zero, ...
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Source: HighBeam Research, Thai Central Bank Aims at Deflation with Interest Rate Cut.