Thailand resorts to rate cut on weaker growth prospects

Bangkok

THAILAND unexpectedly cut its key interest rate for the first time in a year, joining a wave of global monetary easing as the central bank cited weakening growth prospects and risks from China's slowdown. Stocks rose and the baht declined.

The Bank of Thailand cut its one-day bond repurchase rate to 1.75 per cent, with monetary policy committee members voting four-to-three in favour, it said in Bangkok on Wednesday. Thailand joins more than 20 nations around the world that have added monetary stimulus this year as inflation fades on lower oil prices, with the central bank signalling that it needs to use monetary policy to make up for a lack of other growth drivers.