Huge Rate Cut Aims to Restart Thai Economy

Central bank surprises analysts as country forms new government
By Jason Farago,  Newser Staff
Posted Dec 3, 2008 8:22 AM CST
The skyline of Bangkok. The central bank of Thailand cut rates aggressively today to restart the economy after six months of protests.   (©StarvingFox)
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(Newser) – The Bank of Thailand today cut interest rates by 100 basis points, more than any observers expected, as the besieged nation tries to restart its economy. As Bloomberg reports, the 6-month protest that ended with the ouster of PM Somchai Wongsawat sapped exports and aggravated the pain of the global recession. Now fiscal spending necessary to restart the economy will be delayed while MPs scramble to form a new government.