Thursday, April 30, 2015

RHB | Thailand | BOT Surprises With Another Rate Cut To 1.50%


Economic Research
           30 April 2015
Thailand

Economic Highlights




The Bank of Thailand’s (BOT) Monetary Policy Committee (MPC) unexpectedly reduced the key policy rate (1-Day Bilateral Repurchase Rate) by another 25 basis points to the lowest in almost five years of 1.50% on 29 April (see Figure 1). The interest rate was lowered for the second time this year, after a 25 basis points cut last month. The decision came as a surprise as the consensus and our estimate predicted that the rate will be kept unchanged. This followed the previous MPC meeting’s decision that only narrowly leaned (4-3 vote) towards a 25 basis point-cut. This time around, the MPC was more firm (5-2 vote) in cutting rates further on the backdrop of a weaker export outlook and the baht’s resilience.

Economist:  Vincent Loo Yeong Hong  | +603 9280 2172


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