Thai rates only one factor in restoring confidence

BANGKOK: Thailand's central bank said on Wednesday interest rates were only one factor in restoring business confidence and that its rate-setting committee expected a reasonably swift recovery in the economy after severe flooding.

"More importantly, confidence would hinge on the government's ability to implement a credible plan to resolve the flood-related structural problems to prevent the recurrence of the crisis," it said in minutes for its Nov. 30 meeting, when it cut its benchmark rate by 25 basis points to 3.25 percent.

Last month's policy easing came after a pause in October following nine rate increases since July 2010 to tame inflation.