DHAKA: Thailand’s central bank unexpectedly cut its benchmark interest rate by a quarter of a point to 2.25 percent on Wednesday, saying political tension is affecting investor confidence and there’s no sign of exports recovering.

The Bank of Thailand’s Monetary Policy Committee voted 6-1 for the surprise cut for the one-day repurchase rate , the first change since a 25 basis point cut in May.

One member voted for no change.

All but one of 16 economists polled by Reuters had expected the MPC to leave the rate at 2.50 percent. One economist predicted the quarter-point cut, due to weak third-quarter growth and the current political tensions.

As the MPC met, anti-government demonstrators were seeking to occupy more government buildings in their effort to oust prime minister Yingluck Shinawatra, reports The Straits Times.

BDST: 1551 HRS, NOV 27, 2013