Mounting personal debt makes BoT wary of further rate cuts | Bangkok Post: news

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5-car families deterring rate cut

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Chitwalai Srisaengchai bought a car last year to take advantage of a Thai tax rebate and now spends 70% of her salary on the loan. She is also giving the Bank of Thailand another reason to resist monetary easing. 

According to many Bangkokians, the government's first-car buyer policy has worsened the capital's traffic problems. (Photo by Thiti Wannamontha)

Prime Minister Yingluck Shinawatra's stimulus measures have stoked spending and contributed to rising household debt, prompting the central bank to say it will monitor "persistently high" credit growth. About 1.25 million Thais have taken up the car-buying incentive the government introduced to boost domestic consumption after the 2011 floods, helping drive local car sales to a record in 2012.

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