Thai Baht Gains Among Drivers of Surprise Rate Cut, Analysts Say

The Thai Baht’s strength is likely among factors underpinning the Bank of Thailand’s unexpected decision to lower interest rates, according to analysts.

The baht pared gains to trade little changed against the dollar after the central bank’s Monetary Policy Committee voted to cut the one-day repurchase rate by 25 basis points to 1%. Only three of 23 economists surveyed by Bloomberg had predicted the move, with the rest expecting no change. The Thai stock benchmark rose as much as 2.2%.