BANGKOK (AP) Thailand's central bank unexpectedly lowered the cost of credit Wednesday as escalating protests to topple the government add to pressure on the economy.
The Bank of Thailand said it lowered its policy interest rate by a quarter percentage point to 2.25 percent, hoping to stimulate lending and investment.
Flag-waving protesters vowing to topple Prime Minister Yingluck Shinawatra took to the streets of Bangkok for a fourth straight day Wednesday. They are threatening to occupy every government ministry after invading the Ministry of Finance and turning it into an ad-hoc protest headquarters.
The central bank said in a statement that the "ongoing political situation" could compound existing weaknesses in Southeast Asia's second-largest economy. Business confidence is fragile and government plans for $69.5 billion of spending on high speed rail and other transport infrastructure have been delayed by legal challenges.
Thailand's third quarter economic growth was weaker than expected and a recovery in exports has not gained traction, the bank said.