BANGKOK, 29 April 2015 – The Monetary Policy Committee has decided to lower the policy interest rate by a quarter percent, effective from today.
The Monetary Policy Committee members voted five to two in favor of the interest rate cut.
The committee members who backed the reduction ascribed their decision to the country’s downward economic trend, the economic slowdown in China, reduced reliance on imports among the country’s customers and the strengthening of the baht.
Despite the government’s increased budget disbursement and a pickup in tourism, these positive factors are unable to make up for the decline in exports and reduced consumption in the private sector, which could affect private investment and household consumption. These challenges have prompted the majority of the committee members to consider slackening the monetary policy by slashing the policy interest rate.
Those objecting to the interest rate cut reasoned that the existing financial policy had already helped improve the financial situation, adding that stronger financial forces also propped up the economy.
The Monetary Policy Committee will continue to monitor the country’s financial development closely, so as to introduce suitable measures intended to aid economic recovery.