Thai PM expecting central bank to cut interest rates on Wednesday

BANGKOK : Thai Prime Minister Srettha Thavisin said on Tuesday he expected the central bank to cut interest rates when it meets this week to review monetary policy.

"My stance has not changed that we have suffered a lot from this issue. There is an expectation that (interest rates) will have to be reduced," he told reporters.

The Bank of Thailand has so far resisted government pressure to ease policy, holding its benchmark interest rate at 2.50 per cent in February, the highest in more than a decade. Most economists expect the rate to be kept unchanged at its next review on Wednesday, but some predict a cut.

Srettha also said cabinet had approved property measures, as the government attempts to boost Southeast Asia's second-largest economy.

Finance ministry officials are due to hold a briefing about the property measures at 0730 GMT, he added, without giving further details.

Thai media earlier reported that the measures would include reduced transaction fees for houses worth up to 7 million baht ($190,891), with ownership transfer fees cut to 0.01 per cent from 2 per cent, as well as tax deductions and home loans for low-income earners.