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Thai Central Bank’s Surprise Action Is 23rd Rate Cut Of The Year

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Whether the world’s central banks are ‘co-operating’ or competing is up for question but the tsunami of policy easings so far this year is making the ‘surprise’ rate cut, unsurprising. As Bloomberg reports,Thailand today became the latest to execute an unexpected interest-rate cut, bringing the total to 23 in 2015.

While only 6 of 22 economists expected it, the Southeast Asian country — a onetime export powerhouse that’s seen its manufacturing mojo dim somewhat in recent years amid historic flooding and political infighting — lowered its main rate to 1.75%. “The surprise move suggests the economy is much weaker than expected,” noted one analyst, adding that “it is negative for the baht and there’s concern that lower rates may lead to more outflows as the U.S. is expected to raise rates.”

Zero Hedge

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Craig Erlam

Craig Erlam

Senior Market Analyst - UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam

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