Thailand cuts policy interest rate

The Bank of Thailand's Monetary Policy Committee (MPC) on Wednesday decided to reduce the policy rate by 25 basis points to 2.5 percent. Paiboon Kittisrikangwan, Secretary of the MPC, said after the MPC voted unanimously on Wednesday to reduce the policy rate to 2. 5 percent in wake of lower-than-expected economic data in the first quarter. The MPC will closely monitor developments of the Thai economy, financial stability risks as well as capital flow situation, and stand ready to take appropriate action as warranted, said Paiboon. The last interest rate cut took place in October 2012. The decision on Wednesday takes effect immediately.