Thai finance minister sees small impact from interest rate cut

[BANGKOK] Thailand's finance minister said on Thursday a small cut in the policy interest rate would not help boost the economy much and expressed uncertainty about whether this year's growth target can be reached.

"A cut of 25 basis points does not have any big impact," Sommai Phasee said. "To have one, (the central bank) will probably have to signal that interest rates are on the fall."

The economy has expanded less than expected because of poor exports and "we are waiting to see whether growth could reach 4 per cent" this year, Mr Sommai said.

On Wednesday, the central bank's monetary policy committee unexpectedly voted 4-3 to cut the policy interest rate by 25 basis points to 1.75 per cent, its first rate change in a year, to shore up confidence.

REUTERS