BOT unexpectedly cuts rate after growth forecast reduction

Bangkok

THAILAND'S central bank unexpectedly cut its benchmark interest rate for a second straight meeting, roiling markets already digesting a reduction in the 2015 economic growth forecast.

The Bank of Thailand (BOT) lowered its one-day bond repurchase rate by a quarter of a percentage point to 1.5 per cent on Wednesday. The baht slid as much as 0.6 per cent, and the benchmark SET index fell as much as 1.2 per cent, heading to its lowest close since March 31.

The central bank is using a "strong dose of medicine" because exports may contract, hurting private investment and consumption, which can't be offset by a rebound in tourism and government spending, assistant governor Mathee Supapongse said. The finance ministry earlier lowered its forecast for gross domestic product (GDP) growth this year to 3.7 per cent from…