Candidate for Bank of Thailand Chief Backs Aggressive Rate Cuts
Thailand should be more aggressive in cutting borrowing costs given its bleak growth outlook and subdued inflation, according to Somprawin Manprasert, one of the candidates seeking to become the Bank of Thailand 's new governor.
The benchmark rate, currently 1.75%, can be cut by 75-100 basis points, Somprawin said in an interview in Bangkok. The central bank should also 'explicitly' state that it's in an easing cycle, to loosen tight financial conditions and ensure banks pass through more of the rate reductions to customers.
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