Bank of Thailand Cuts Interest Rates, Baht Weakens

The Thai baht weakened today after the central bank eased its monetary policy on concerns about slowing economic growth.

The Bank of Thailand cut its main interest rate by 0.25 percentage point to 2.5 percent. Such decision was expected by market analysts. The bank voiced worries about economic slowdown:

The Thai economy in the first quarter of this year grew less than expected from tepid domestic demand, which could weigh on overall economic momentum particularly if there was delay in government’s infrastructure investment expected to start later this year.

USD/THB went up from 30.0850 to 30.2350 as of 10:18 GMT today.

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