The monetary authority pledged Friday to ensure sufficient liquidity for markets to function well as it unveiled an emergency interest-rate cut to counter the economic shock of the coronavirus outbreak. Governor Veerathai Santiprabhob and other key guardians of the financial system are due hold a briefing Sunday on coping with the impact of the disease.
The coronavirus crisis has created funding stresses across the world after upending a range of investments and sparking a dash for cash. There are indications high net-worth investors in Thailand have been making mutual fund redemptions, according to Maybank Kim Eng Securities Pcl. The reduction in the policy rate to 0.75% from 1% takes effect March 23. In its statement, the central bank said the overall financial system is stable but added the coronavirus outbreak had affected the functioning of Thai markets.
The Thai stock market has plunged 29% this year and the baht is Asia’s second-worst performing major currency. The yield on the 10-year Thai government bond jumped to 1.68% on March 20 from 0.83% on March 9.
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