Thailand Unexpectedly Cuts Interest Rates To 1.75%

The Bank of Thailand on Wednesday took markets by surprise and cut its key interest rate for the first time in a year in a bid to spur growth. The central bank cut the policy rate by 25 basis points to 1.75%. "In the fourth quarter of 2014 and January 2015, the Thai economy continued to recover slowly, as the economic momentum from private consumption and investment was softer than expected owing in part to weaker private sector's confidence," the central bank said in a statement. The Thai baht dropped after the rate cut, so that a dollar bought 32.85 baht, up from 32.71 baht late Tuesday.