Bank of Thailand announces first rate cut in four years
Central bank unexpectedly eases policy by 25bp as inflation stays below target
In an unexpected decision, Thailand’s central bank today (October 16) reduced its policy rate by 25 basis points to 2.25%.
The bank’s monetary policy committee (MPC) had previously held rates at 2.5% for five consecutive meetings. Only five of 28 economists polled by Bloomberg had predicted the cut. The Bank of Thailand (BoT) last reduced its policy rate in May 2020.
In a statement, the BoT said five of the seven MPC members had voted for the cut in order to “alleviate [the] debt-servicing burden
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