MPC axes policy rate by 75bps

 The move followed a 1 percentage point cut in December.

  "The MPC considers that the monetary policy could be further relaxed to support the economic recovery..., when it would take some time before fiscal measures would show their effectiveness," said Bank of Thailand Assistant Governor Duangmanee Wongprateep. She also noted that at 2 per cent, the rate could be cut further.

 She noted that Thai economy has suffered from export contraction as a result of the global crisis, as well as the slowing consumption and investment. There are growing risks on economic expansion.

 Economists had anticipated a 50-100 basis points cut, as Thai economy is projected to grow only 0-5-2.5 per cent in 2009, the lowest in 10 years, without any additional monetary and fiscal measures. Economic growth in 2008 was projected at 4 per cent.