นสพ.คอม - BoT urged to cut policy interest rate

<body> <h1>BoT urged to cut policy interest rate</h1> <p> 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 one per cent, consumer burdens on making installment payments for homes would be reduced by around eight 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.Because of this, he advised the government to have a clear policy to manage unemployment and stimulate private-sector spending by offering tax incentives for business expansion, and to promote freelance careers and self-employment.He said the government must quickly implement the measures before the US economic downturn affects the Thai economy.However, Mr Arthip said he is confident that property companies will not go out of business as in 1997 when the country experienced the last major economic crisis, because commercial banks have been strict in lending to the property development sector.In addition, the government should act to ease criteria for lending to the property sector since some 20 per cent of all homebuyers currently failed to receive bank approval for their loan applications.The property sector executive also wanted the government to extend tax incentive measures, including reduction of loan mortgage and ownership transfer fees for another one year to stimulate the property business growth. (TNA) </p> </body>