Another Policy Rate Cut as Market Continues to Slow Down
Thailand’s capital market continued to slow down over the course of 2019. To promote investment, the Bank of Thailand cut the policy rate for the second time this year in November from 1.50% in August 2019 to 1.25%.
The residential market has continued to weaken despite the government’s measure of reducing both transfer and mortgage fees to 0.01% from 2% and 1%, respectively. However, the new rate only applies to first-owned residential property priced below THB 3 million. The Bank of Thailand has stated that they will reevaluate the recently amended LTV regulations after the implementation in April 2019.