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

Economic Research	30 April 2015
Thailand
Economic Highlights
BOT Surprises With Another Rate Cut To 1.50% 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
To access our recent reports please click on the links below: 29 April 2015: Exports Contracted For Third Straight Month In March 01 April 2015: Money Supply And Credit Growth Rose In February 31 March 2015: Manufacturing Production Expanded First Time in Almost Two Years 27 March 2015: Exports Deteriorated Further In February 12 March 2015:BOT Slashed Rates For The First Time In A Year To 1.75% 03 March 2015: Prices Deflate For The Second Straight Month In February