Bank of Thailand Eases 25 Basis Points

April 8, 2009

The Thai one-day repo rate was cut to 1.25% from 1.5%.  Most analysts had expected a cut of that magnitude, although a significant minority was looking for a 50-bp reduction.  This was the fourth cut since December and continues a progression toward smaller-sized moves after drops of 100 bps in December, 75 bps in January, and 50 bps in February.  The policy rate is now 250 basis points below the 3.75% peak level seen from late August to early December of last year.  A statement on the Bank of Thailand website emphasizes continuing growth risks and declining inflation.

Copyright 2009 Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.

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