Thai policy rate adequate to handle risks: central bank minutes

THAILAND’S policy interest rate is at an adequate level to address economic risks as the recovery is uneven and financial conditions have tightened, minutes of the Bank of Thailand’s Oct 16 monetary policy meeting showed on Wednesday.

At the meeting, the monetary policy committee unexpectedly voted 5-2 to cut the one-day repurchase rate by 25 basis points to 2.25 per cent, the first decrease since 2020. Two members voted to keep the rate steady.

The rate cut was expected to mitigate the risk that tighter financial conditions might hurt the economy by helping household debt deleveraging and reducing overall debt burdens, according to the minutes released by the Bank of Thailand (BOT).

“The current policy rate remained adequate to address risks to the outlook for the economy, inflation, and financial stability,” the minutes  REUTERS