The Bank of Thailand's (BOT) Monetary Policy Committee (MPC) voted unanimously to cut the benchmark Repurchase Rate by 25 basis point to a record low of 1.0%, the lowest in Asia outside of Japan, as cited by Reuters.
According to the latest Reuters poll of 23 economists, the BOT was forecast to keep the rates on hold this Wednesday.
With the unexpected rate cut, the Thai central bank lowered the rates for the third time in six months.
This seems to be a pre-emptive move in an effort to counter the negative impact of the China coronavirus on the Asian economy.
The Thai baht plunged to a fresh two-day low against the US dollar on the surprise rate cut, as USD/THB now trades near 31.175, up 0.70% on the day.
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