Interest rate : the BOT cut from 2,75 to 2 %

Thailand’s central bank cut its benchmark interest rate more than economists expected for a second month after inflation cooled to the slowest pace in six years and political protests sent confidence to a record low.

The Bank of Thailand lowered its one-day bond repurchase rate by three-quarters of a percentage point to 2.00 percent. (Bloomberg)

In december, the cut was 100 basis points.

The Dildo Economy continues. The BOT follows all the other inane central banks around the world… we will be probably at zero in a few months…

But on the ground, nothing will really change, particularly in Thailand (read “thai interest rate structure is abnormal“).

Anyway, the important point is to feel stimulated enough. 😉

4 Responses to “Interest rate : the BOT cut from 2,75 to 2 %”


  1. 1 ray 14 January 2009 at 12:32 pm

    this is going to end in disaster.on one hand the govt dont have money and are going to borrow foreign funds. and no wthe race to 0% interest rates. mark my words 1997 is going to be repeated. if indeed this happens the govt will soon be “managing”thai currency against the fund managers. they will attck out currency. its a recipe for disaster.
    now it is proven the thai govt does not learn anything from the past mistakes. sad sad situation for my country.

  2. 2 chinesethai 14 January 2009 at 1:38 pm

    ThaiCrisis:

    Frankly, I believe King Bhumibol’s Sufficiency Theory, much derided by the West and Thai republicans as socialist and the King himself as not sticking to his own notion e.g. the Crown Property Bureau, should be put into action. It will not only save Thailand but also the world. It will prevent the possibility of international conflicts caused by protectionism.

    How much more money do the governments of the world need to raise and inject into this black hole? It is time to go back to focusing on the real economy.

  3. 3 ThaiCrisis 15 January 2009 at 12:51 am

    Frankly, I believe King Bhumibol’s Sufficiency Theory, much derided by the West and Thai republicans as socialist and the King himself as not sticking to his own notion e.g. the Crown Property Bureau, should be put into action.

    I agree CT. But… but… you have to aknowledge that the “current” Sufficiency Economy, the one followed by the Junta, and now praised by Abhisit is absolutly not what the King was thinking… It’s an empty word, used by politicians to look good, that’s all.
    Sufficiency Economy is certainly not compatible with the Dildo Economy. So who is Abhisit to come now to speak to us about “Sufficiency Economy” ? I mean it’s so grotesque.

    So, pardon me, but until there is a real debate around the concept of Sufficiency Economy, I will continue to ridicule it.

  4. 4 chinesethai 15 January 2009 at 8:59 am

    Abhisit is clearly deviating from Sufficiency Economy. And you are right that the term was used by either Thaksin, the Junta, or Abhisit just to make themselves look good and hopefully shield them from criticism.


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Thailand Crisis

Coup, Economic slowdown, Terror In the South... The situation is worsening in Thailand. Bumpy road like often before.

But this time, it's different.

The key to understand the present turmoil is the inevitable... succession of King Bhumibol.


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