SINGAPORE, June 22 (Reuters) - Thai Prime Minister Abhisit Vejjajiva said on Monday that the central bank had gone as far as it could cutting interest rates and he saw the economy returning to positive growth by the end of this year. "They brought interest rates down substantially in the last half of the year ... they have gone as far as they can go," Abhisit told Reuters in an interview in Singapore.
The Bank of Thailand surprised financial markets at its last meeting in May by leaving its policy rate steady at 1.25 percent when a 25-basis-point cut had been widely expected to aid recovery from the global downturn.
Bond yields have risen sharply since the meeting as the decision fuelled speculation the central bank's easing cycle was over following cuts of 2.50 percentage points since December.
"We'd like to see growth back in positive territory by the end of the year and maybe growth like 2 percent next year," Abhisit said. "Much of it will depend on the global recovery. Looking at the current situation we think it's achievable."