Rate Cuts at the Central Bank of Iceland and The Bank of Thailand

February 5, 2020

The Central Bank of Iceland as expected cut its 7-day term deposit rate by 25 basis points to 2.75%. A total of six 25-bp cuts were enacted during 2019. In a released statement, members of the Monetary Policy Committee cut their projected 2020 growth rate in half  to 0.8%, observing weak exports and tighter financial conditions. Total and core inflation have fallen.

The Bank of Thailand also eased monetary policy today, cutting its one-day repo rate by 25 basis pints to 1.05. This move follows 25-bp cuts done last August and November. A released statement also announces a substantial downward revision of projected growth this year, which they attribute to the coronavirus outbreak, a delayed passage of budget spending, and on ongoing drought. Sub-target inflation is expected to continue throughout the  policy forecast time frame.

Copyright 2020, Larry Greenberg. All rights reserved. No secondary distribution without express permission.

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