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The decision of the central bank, which is traditionally known to be conservative, was both unexpected but inevitable. The bold measure was needed to cure the existing economic ills that have been badly affected by the ongoing political crisis and the closure, by PAD protesters, of Bangkok's two major airports for eight days. Without this bold measure, the economic impact this month and in the first half of next year would be even more damaging.

Bank of Thailand assistant governor Duangmanee Vongpradhip said the central bank hoped the policy rate cut would help the economy in the short term. "It sends a clear signal that we will use monetary policy to take care of the economy while inflation is not a problem."

However, the real problem weakening economic stability is the political crisis at home. In this respect the interest rate alone will not help much. Thais will have to show a resilient spirit to help the nation recover from the damage. In addition it is going to take time to regain the confidence of both investors and tourists.

Everyone needs to reflect on what they can do to steer the country out of this crisis. Because monetary policy alone will not help if the nation lacks political peace and stability.