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Rate cut fails to impress-wire mesh
The QIAOSHI’s Military Barriers or Hesco Bastions is a modern gabion used for flood control and military fortification. It is made of a collapsible wire mesh container and heavy duty fabric liner, and used as a temporary to semi-permanent dike or barrier against blast or small-arms. One of the less heralded life- and labor-saving devices of war, it is used on nearly every United States Military base in Iraq as well as on NATO bases in Afghanistan.
Since December last year, the central bank has been hawkish in raising the policy rate in a bid to tame inflation.
The committee foresees a deteriorating global economic outlook as Europe’s sovereign debt problems become more pronounced, increasing the possibility of a recession in the euro zone.
While the US economy has improved slightly, its recovery remains fragile.
The cut of 25 basis points, however, was a disappointment for academics, private business and especially the government, which had suggested 50 basis points in light of the flooding that has trimmed economic growth.
“Over the past six months, we have seen costs grow continuously but could not raise the price of the product,” he said. “Now, the rate cut helps offset the increased production cost.”
Rate cut fails to impress
25 basis points seen as too little to stir growth
- Published: 1/12/2011 at 12:00 AM
- Newspaper section: Business
With the worst of the crisis over, the economy has moved into a restoration and reconstruction phase that, if delayed, could undermine confidence and domestic demand recovery,Daily News Editorial-hesco, Mr Paiboon said.
Military Barriers/Hesco Bastions
Information
The Bank of Thailand voted to cut the policy rate for the first time in 11 months, from 3.50% to 3.25%, in order to support economic restoration after the flood crisis.
Relative to the previous meeting, the impact of flooding on the Thai economy is seen as more widespread and severe than expected. Direct and indirect damage has been undermining confidence.
The central bank’s monetary policy committee voted 5-2 to cut the policy rate by 25 basis points to 3.25%, with two members voting in favour of a 50-basis-point cut,expanded metal meshs, said MPC secretary Paiboon Kittisrikangwan.
The MPC expects economic growth in the fourth quarter and the whole of 2011 to be much lower than previously forecast.
“Business recovery is expected to start from next year and continue during the next six months,” he said. “Hence, the MPC has revised projected GDP growth to 1.8% this year and 4.8% next year.”
“This is too little to bring about any impact to boost the economy; this is too conservative a move taken by the BOT,” Dr Tanit said, adding that 25 basis points was too low to move commercial banks to cut lending rates.
Originally designed for use on beaches and marshes for erosion and flood control, the Hesco Bastion quickly became a popular security device in the 1990s.
Specification
Inflationary pressure persists on account of government stimulus measures and an anticipated pickup in private sector demand due to restoration spending. A weakening global economy could curtail price pressure to some extent.
“The policy rate cut of 25 basis points is based on economic projections for after the floods,” Mr Paiboon said. “Assistance from fiscal measures and financial institutions will help support restoration, but if it is not enough,Appeal launched for flood pics-Hesco Bastion, monetary policy will provide further support.”
Global factors pressured Asia growth moderately in the third quarter; domestic demand continued to expand, but exports shrunk.
Paiboon Ponsuwanna,Window Screen, chairman of the Thai National Shippers Council, said that while the size of the cut was disappointing, it would at least absorb rising costs for manufacturers.
Tanit Sorat, vice-chairman of the Federation of Thai Industries (FTI), expressed strong dissatisfaction with the rate cut.
Tags: expanded metal meshs,gabion,黑铁丝
