FX.co ★ Thai Central Bank Cuts Key Interest Rate

Thai Central Bank Cuts Key Interest Rate

(RTTNews) - The Thai central bank reduced its key interest rate more than expected on Wednesday.

The Monetary Policy Committee of Bank of Thailand slashed one-day repurchase rate by 75 basis points to 2% from 2.75% with immediate effect. Economists had expected the central bank to cut the rate by 50 basis points.

Annual inflation had slowed significantly to 0.4% in December from 2.2% in the previous month. Inflation, thus reached the weakest level in more than six years.

The MPC viewed that monetary policy could be eased further to support the economic recovery, particularly as the economy continued to face numerous negative risks; both on the domestic and external fronts, and the impact of fiscal stimulus would take some time to materialize.

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