Some at Bank of Thailand pushed for rate cut – minutesTwo 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. 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. 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 accommodative and financial measures would be more effective and targeted than cutting the policy rate which was a "blunt instrument", the minutes said. "They thus voted to cut the policy rate at this meeting, although the policy rate was deemed less targeted and effective than other financial and fiscal measures, to mitigate heightening risks in the period ahead," the minutes said.

Source: Bangkok Post August 18, 2021 05:37 UTC