The Logbook: The broken peg that caused the Asian financial crisis

Quick Take

  • From the mid-1980s to the early 1990s, Thailand experienced a strong economic boom 
  • This period of economic prosperity ultimately ended up creating one of the worst financial crises in Asian history

In a move that hints at uncertainties some developing countries are facing amid the ongoing trade war between the U.S. and China, Thailand’s central bank voted to cut interest rates by 25 basis points from 1.75% to 1.50% earlier this week. It was Bank of Thailand monetary policy committee’s first rate reduction since 2015.