BANGKOK, Nov 7 (TNA) — Thailand’s central bank cuts its policy rate to 1.25 percent, the lowest ever, in a bid to boost growth.
The Monetary Policy Committee (MPC) of the Bank of Thailand (BoT) voted 5 to 2 to lower the policy rate by 0.25 percentage point from 1.50 to 1.25 percent, effective immediately.
Titanun Mallikamas, MPC Secretary, said the Committee in a meeting on Wednesday assessed that the Thai economy would expand at a lower rate than previously assessed and further below its potential due to a decline in exports which affected employment and domestic demand.
The majority of the MPC members viewed that “a more accommodative monetary policy stance would contribute to economic growth and support the rise of headline inflation toward the target.”
Exports contracted more than the previous assessment and were projected to recover more slowly than expected due to the slowdown of global trade volume affected by trade tensions, the MPC says in its statement.
The MPC expressed concerns over higher risks in the following period arising from trade tensions, the economic outlook of China and advanced economies that could affect domestic demand, as well as geopolitical risks.
On the exchange rates, the MPC also raised concerns over the baht appreciation against trading partner currencies, which might affect the economy.
It supported the relaxation of foreign exchange regulations to encourage capital outflows and promote more balanced capital flows, said Titanun who is also the BoT Assistant Governor, Monetary Policy Group. (TNA)
