Thai central bank says still has room to help economy after cutting rate to record low

Thailand's central bank still has monetary policy space to help the economy...

BANGKOK - Thailand’s central bank still has monetary policy space to help the economy if necessary, its governor said on Thursday, a day after cutting the benchmark policy rate to a record low.

On Wednesday, the Bank of Thailand unexpectedly cut its policy interest rate THCBIR=ECI by 25 basis points to a record low of 1.00%, citing expected drags on the economy from a virus outbreak spreading from China, delays to Thailand’s fiscal budget and a drought. However, the rate cut may not help the economy much because rates were already very low and there is ample liquidity in the banking system, he said.

On the baht, Veerathai said although it has weakened and became Asia’s worst performing currency this year, it is still not in line with economic fundamentals and will continue to face high volatility.

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