Thailand cut its key interest rate for the first time this year to bolster the economy as prolonged political unrest curbs local demand and hurts tourism.
The Bank of Thailand cut its one-day bond repurchase rate by a quarter of a percentage point to 2%, with monetary policy committee members voting four-to-three in favour, it said in a statement on Wednesday. Sixteen of 26 economists in a Bloomberg News survey predicted the decision, with the remainder expecting the rate to be held.
Thai consumer confidence fell to its lowest in more than 12 years in February as anti-government protests persisted for more than four months. Fitch Ratings and Moody’s Investors Service last week warned about risks to the nation’s creditworthiness if the political gridlock continues, and the constitutional court today rejected a 2 trillion baht ($62 billion) infrastructure bill that parliament had approved.
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