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Bank of Thailand CUTS rates to WEAKEN the Baht

Thailand’s central bank on Wednesday FINALLY cut its benchmark interest rate for the first time since 2015, which should weaken the strong baht and support faltering growth.

The Bank of Thailand (BOT)’s monetary policy committee (MPC) voted 5-2 to cut the one-day repurchase rate by 25 basis points to 1.50% – the level before it was hiked by the same amount in December, the first tightening since 2011.

The two dissenters favored a hold.

The committee said it was worried about the strength of the baht.

In a Reuters poll, 14 out of 15 economists had predicted no change to policy while the other forecast a quarter-point cut.

Which only illustrates how little these idiots know.

The baht is Asia’s best-performing currency this year, appreciating about 6% against the dollar The central bank had earlier been resistant to rate cuts, voicing concern about consumer debt levels and financial stability risks.

However, the outlook for Thailand’s economy has deteriorated sharply in recent months amid escalating U.S.-China trade tensions, worsening drought and a surging currency, which is hurting exports and tourism.

The baht has gained about 8% against the dollar in the past year, the best performer in Asia