Thai Central Bank Cuts Rate by 25 bps

Thailand’s central bank cut its main policy rate by 0.25 percentage point Wednesday and said capital controls are ready to be implemented if needed to contain the strength of Thailand’s currency, providing some relief for exporters struggling to cope with the rise of the baht this year but disappointing government leaders who have urged more-decisive action.

Bank of Thailand Gov. Prasarn Trairatvorakul said slower than expected growth in the first quarter of the year and a weak global economic recovery prompted the bank’s Monetary Policy Committee to vote unanimously to cut the one-day repo rate to 2.50% from 2.75%. It was the bank’s first cut since a 0.25 percentage point cut in October last year.

“There was no political pressure in the rate-cut decision,” Mr. Prasarn said during an appearance on a popular early evening television talk show. “The committee wasn’t looking at the baht value when debating its decision, but the overall economic conditions.”

via WSJ

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