Thai central bank slashes key rate to 1.5 percent

The Jakarta Post, The Associated Press, Bangkok | Wed, 02/25/2009 2:59 PM  |  Business 

Thailand's central bank has slashed its benchmark lending rate for the third time in three months as it attempts to kickstart an economy headed for its first recession in a decade. 

The Bank of Thailand's statement Wednesday says the rate was lowered by half a percentage point to 1.5 percent - its lowest level since early 2005. 

Last month, the bank cut the rate by 0.75 percentage point after a 1 percentage point cut in December. 

Southeast Asia's second-largest economy may contract as much as 1 percent in 2009 because of declining exports and weak domestic demand, according to the government's National Economic & Social Development Board.