The Bank of Thailand (BOT)'s Monetary Policy Committee on Wednesday decided to cut the benchmark one-day repurchase (RP) rate to 1.50 percent, or 0.50 percentage point lower, in a bid to shore up the country's sluggish economy, the website by Thai-language newspaper Thai Rath reported.

The decision of lowering the benchmark RP rate has reflected the central bank's continuously relaxed monetary policy due to economic risks, amid the rising global economic downturn.

The falling export demand and weakening domestic demand have affected the country's economic growth, according to BOT's assistant governor Duangmanee Vongpradhip.

Separately, on Wednesday Commerce Minister Pornthiva Nakasai said a drop in the country's export growth is expected for 2009, however, the government would try to achieve the annual growth target of three percent, the website by Bangkok Post reported.

The country's exports in 2008 grew 15.6 percent, or about 177. 84 billion U.S. dollars in value.

But, in January this year due to the global economic turmoil, the country's exports were hard hit, with a sharp contraction of 26.5 percent year on year.

(Xinhua News Agency February 25, 2009)