BANGKOK, March 20- Thailand’s central bank on Friday made the decision to cut its key interest rate by 25 basis points to a record breaking low of 0.75% in a special emergency meeting, effective starting on March 23.
The committee voted unanimously to cut the key rate to reduce the burden of interest on borrowers affected by the Covid-19 Coronavirus outbreak and to alleviate strains on liquidity in the financial markets, the Bank of Thailand said in a statement.
“This will help mitigate the impact on the economy and will also reinforce fiscal measures that are already implemented as well as future measures/” The Bank of Thailand continued.
The monetary policy committee of Thailand expects the COVID-19 outbreak to become more severe than previously forecast worldwide and conditions to take some time to return to normal. This could severely affect the Thai economy, the central bank said.