Two members voted to maintain the policy rate at 1.75 per cent, according to the committee’s secretary, Titanun Mallikamas.

In deliberating their policy decision, the committee assessed that the Thai economy would expand at a lower rate than previously assessed due to a contraction in merchandise exports, which has started to affect domestic demand.

Inflation was projected to be lower than the lower bound of the inflation target. Overall financial conditions remained accommodative.

Financial stability risks had already been addressed to some extent, although there remained pockets of risks that warranted monitoring.

A more accommodative monetary policy stance would contribute to

the continuation of economic growth and should support the rise of headline inflation toward target. Most members thus voted to cut the policy rate at this meeting.

Nevertheless, two members viewed the policy rate cut as under the already accommodative monetary policy and might not lend additional support to economic growth, compared with the potentially higher financial stability risks. Moreover, there remains a need to preserve policy space, the dissenting members argued.