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Some at Bank of Thailand pushed for rate cut – minutes
Two members of Thailand’s monetary policy committee who pushed unsuccessfully for a rate cut earlier this month argued preemptive action was needed because of the risks of an economic slowdown in the period ahead, minutes of the meeting showed.
The biggest Covid-19 outbreak to date, which prompted stricter containments measures to areas accounting for about 80% of gross domestic product, has hit economic activity and the still struggling tourism sector.
On Aug 4, the committee voted 4-2 to keep the Bank of Thailand’s (BoT) one-day repurchase rate at a record low of 0.50%, with two dissenters wanting a quarter point cut. The BoT also cut its 2021 GDP growth outlook to 0.7% from 1.8%.
It was the first split decision since a rate cut in May 2020, raising some expectations of a rate cut at the BoT’s next meeting on Sept 29.
Members agreed that monetary policy remained…
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