“Thailand’s central bank unexpectedly cut its benchmark interest rate for the first time since January as a faltering global economy damps exports, days after the governor said there was no need to ease policy.
The Bank of Thailand cut its one-day bond repurchase rate by a quarter of a percentage point to 2.75 percent, it said in Bangkok today. The decision was predicted by three of 23 economists in a Bloomberg News survey, while the rest expected no change. The monetary policy committee voted 5-2 in favor of a cut, it said in a statement, without disclosing names.
Thailand’s move today contrasts with Governor Prasarn Trairatvorakul’s stance in an Oct. 13 interview that there was no need for a rate cut, even after Finance Minister Kittiratt Na-Ranong called for lower borrowing costs and a weaker baht to help exporters. The central bank said today there was no political interference in the decision, as it joined South Korea and Brazil in reducing borrowing costs to shield growth.”
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