Market News
Thai central bank cuts rates to lowest in two years to support growth - REUTERS
Summary
- Vote to cut key rate by 25 bps to 1.50% was unanimous
- BOT says policy to be accommodative going forward
- GDP to slow in H2 on tariff impact on businesses and consumption
- Governor Setthaput's last meeting, Vitai takes over in October
BANGKOK, Aug 13 (Reuters) - Thailand's central bank lowered its policy rate by a quarter point on Wednesday, its fourth cut in 10 months, to support a sluggish economy grappling with falling prices, the impact of U.S. tariffs and a decline in foreign tourists.
The monetary committee unanimously voted to cut the one-day repurchase rate (THCBIR=ECI) by 25 basis points to 1.50%, the lowest in more than two years.
The economy was expected to expand this year and next, close to earlier assessments, but U.S. trade policies would exacerbate structural problems and weaken competitiveness, with small businesses vulnerable, the central bank said in a statement.
