BANGKOK: Thailand's central bank cut its key interest rate by a quarter point on Wednesday amid government calls for further easing to support the economy and weaken the baht to boost exports.
The Bank of Thailand's monetary policy committee voted 6-1 to reduce the one-day repurchase rate by 25 basis points to 2.00% at its first meeting of 2025. That followed a rate hold in December and a quarter-point cut in October.
Ten of 26 economists in a Reuters poll had predicted the key rate would be cut this week. Sixteen economists had expected no policy change on Wednesday.
Finance Minister Pichai Chunhavajira had on Monday said Thailand's low inflation meant there was room for an interest rate cut to boost economic growth and help weaken the baht to support exports, a key growth engine.
Annual headline inflation was 1.32% in January, after averaging 0.4% last year, well below the central bank's target range of 1% to 3%.
The stock market rose after the announcement and was up 2% at 0709 GMT, while the baht pared earlier losses. - Reuters
