BANGKOK, Aug. 7 (Xinhua) -- The Bank of Thailand (BoT) decided on Wednesday to cut its benchmark interest rate by 25 basis points to support faltering growth and weaken the strong baht.
The BOT's Monetary Policy Committee voted by 5 to 2 to cut the policy rate by 0.25 percentage point from 1.75 to 1.50 percent.
The Policy Committee said the Thai economy would expand at a lower rate than previously assessed due to a contraction in merchandise exports, which has started to affect domestic demand.
The committee also said inflation was projected to be lower than the lower bound of the inflation target while overall financial conditions remained accommodative.
Financial stability risks had already been addressed to some extent, although there remained pockets of risks that warranted monitoring, the committee said.
Most members voted to cut the policy rate as they see a more accommodative monetary policy stance will contribute to the continuation of economic growth and should support the rise of headline inflation toward target.
