Bank of Thailand Eases Policy
January 14, 2009
On Friday, the Bank of Korea cut its key benchmark by 50 basis points to 2.5%. That rate is now down 275 basis points cumulatively from 5.25%. Today’s spotlight belonged to another Asian central bank, as the Bank of Thailand followed up on a 100-bp reduction in early December by reducing its rate by 75 basis points to 2.0% and released a statement that spoke of continuing negative domestic and external growth risks, low inflation, and inevitable delay before fiscal support will stimulate a recovery. Both of these central banks had engineered the final rate hikes of previous tightening cycles as recently as this past August, a full year after the first outbreak of a global financial market misfire.
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