Thailand Unexpectedly Holds Rate Under New Chief; Baht Gains

The Bank of Thailand unexpectedly kept its key interest rate unchanged at the first policy meeting under new Governor Vitai Ratanakorn, preserving policy space despite a worsening economic outlook and strong baht.

The central bank’s Monetary Policy Committee voted five to two on Wednesday to hold the one-day repurchase rate at 1.50%, as predicted by only six of 26 economists surveyed by Bloomberg. Nineteen expected a quarter-point cut, while one forecast a half-point reduction.