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The pressure on the central bank to lower the rate came after the Reserve Bank of Australia yesterday lowered the overnight cash rate by 100 basis points to six per cent. The Australian central bank move has led to speculation that other central banks will follow suit. The global stock markets positively responded to the move. The Bank of Japan yesterday, however, left the benchmark rate unchanged at 0.5 per cent, acknowledging that economic recovery may be delayed amid substantial uncertainty. But Indonesia's central bank raised its policy rate by a quarter basis point to 9.5 per cent to slow inflation and boost the rupiah.

Newly appointed adviser to Finance Minister Suchart Thadathamrongvech prefers a low rate to boost economic growth. However, a series of both domestic and international incidents may make him soften his stance. The global economic situation has yet to settle. But so far, the policy has seemed to help Thailand withstand the global turbulence, even though the risk is still there. So, today, the MPC will have to weigh the risks from both factors: international turbulence and price rises at home. But regardless of the interest rate policy, the Thai economy is still highly influenced by the domestic political situation, something that's beyond the control of the central bank.