BANGKOK, Oct 16 Reuters Thailand39;s central bank unexpectedly cut its key interest rate at a policy review on Wednesday, a move long called for by the government as needed to revive a sluggish economy with inflation below target.

The central bank39;s move follows five consecutive meetings where it held rates steady and months of pressure from the government for monetary easing that would align with its fiscal stimulus.

The Bank of Thailand39;s BOT monetary policy committee voted 5 to 2 to reduce the oneday repurchase rate by 25 basis points to 2.25, after the rate had been at a decadehigh of 2.5 since September 2023.

The benchmark index rose 1.4 after the surprise cut.

The cut would help ease the debt burden without hindering the process of reducing the household debttoGDP ratio, the central bank said in a statement.

Only four of 28 economists in a Reuters poll had predicted a quarterpoint cut this week. Twentyfour economists had expected no policy change.

The case for cuts arguably only grew even more over the past few months, in view of the rapid appreciation of the baht, said Miguel Chanco, chief emerging Asia economist at Pantheon Macroeconomic, who predicts another cut in December.

The previous change in policy was a 25 basis point rate rise in September last year.

The BOT raised its 2024 economic growth forecast to 2.7 from 2.6 earlier, and predicted 2.9 growth in 2025, down from the 3 previously projected.

The World Bank has forecast the economy will…