BoT urged to cut policy interest rate to help homebuyers

enews.mcot.net — The Bank of Thailand (BoT) should reduce the policy interest rate by at least 0.50 per cent to be on par with the US Federal Reserve's latest interest cut, within this year, to help reduce the burdens of homebuyers amid the country's economic slowdown, according to a top Bangkok property-sector executive. Thai Condominiums Association president Athip Peechanont said that consumer incomes had dropped as a result of the current economic sluggishness. Should the short-term repurchase rate drop by 1 per cent, consumer burdens on making installment payments for homes would be reduced by around 8 per cent. Mr. Athip conceded he remains concerned that the Thai economy next year will expand more slowly, which could negatively affect consumer purchasing power. Should the country's export and tourism sectors grow slowly, it will fuel unemployment. Although the interest rate would then tend to decline, consumer purchasing power would not increase.

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