Bank of Thailand cuts policy rate, to 1.5%
The Bank of Thailand’s Monetary Policy Committee has made a surprise decision today to cut the policy interest rate amid pressure to avert an economic slowdown and hedge the heightened trade war between the US and China.
The MPC cut the interest rate by only 25 basis points to 1.5 %. But the cut is significant. Of the seven-member committee, five voted for the cut while two voted to maintain the rate at 1.75%.
The Thai baht has been one of the strongest currencies in the region while the Chinese yuan has been weakening. The baht and Thai government bonds are considered by foreign investors as a safe-haven. The baht ranks 18th among the world’s strongest currencies.