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Thailand's central bank reduced its key interest rate by a quarter-point to a record low on Wednesday, as the economy is set to contract more than expected due to coronavirus, or Covid-19, pandemic.
The Monetary Policy Committee of Bank of Thailand voted 4-3 to cut the policy rate to 0.50 percent from 0.75 percent, with immediate effect. Three members voted to hold the rate at 0.75 percent.
The GDP is expected to fall more than expected as pandemic has weighed on tourism and exports. Due to rising unemployment, consumption and private investment decreased further.
The committee observed that timely fiscal measures are required to support employment and small and medium sized enterprises.
