Lowering interest rates indicates economic slowdown
The Center for Economic and Business Forecast says the cutting of interest rates by banks has signalled that the country is now facing economic slowdown.
Thanawat Polwichai, the director of the Center for Economic and Business Forecast with the University of the Thai Chamber of Commerce, said that the lowering of interest rates is a clear indication of the economic slowdown in the country.
This is reflected by the drop in consumer confidence index which has fallen from 74.7 last month to 73.5.
This drop is a sustained three month contraction and is the lowest in a five month period, he said.
He speculates that consumers are becoming increasingly concerned over the slow recovery of the economy and the increasing severity of the national drought crisis which has forced exports to falter.
He said best estimates for Thailand’s economic growth in 2016 now stands at only 3 % and an official revision of this figure is expected to be made later in the month.