Thailand's policy rate adequate to address risks: central bank

BANGKOK, Oct. 30 (Xinhua) -- Thailand's key interest rate remained adequate in managing risks as the Southeast Asian country's economy experienced uneven recovery across sectors, the central bank said.

The Bank of Thailand's monetary policy committee earlier this month voted 5-2 to reduce the one-day repurchase rate by 25 basis points to 2.25 percent, marking the first cut in more than four years and a move long encouraged by the government to shore up a sluggish economy.

"The current policy rate remained adequate to address risks to the outlook for the economy, inflation and financial stability," according to minutes from the policy meeting released by the central bank on Wednesday.

The policy rate should remain neutral and consistent with economic potential, and it should not be too low that financial imbalances would build up in the long term, the minutes said.

Economic growth engines were expected to become more balanced, fueled by expansions in the tourism and export sectors, while domestic demand would be partially supported by government economic stimulus measures. However, private consumption was expected to slightly slow down after a period of strong growth, the central bank said. ■