The Thai baht declined today after Thailand’s central bank made a surprise interest rate cut.
The Bank of Thailand reduced its main interest rate from 1.75% to 1.5%. Five members of the Monetary Policy Committee voted for the action, while two voted to keep the rate unchanged. The statement explained the reasons for the decision:
In deliberating their policy decision, the Committee assessed that the Thai economy would expand at a lower rate than previously assessed due to a contraction in merchandise exports, which started to affect domestic demand. Inflation was projected to be lower than the lower bound of the inflation target.
USD/THB jumped 0.23% to 30.80 as of 17:51 GMT today.
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