In a surprise move on Wednesday, the Bank of Thailand's Monetary Policy Committee (MPC) cut the policy rate by 25 basis points to 1.5%.
It was the second time in a row that the MPC has cut the rate in a fresh effort to sustain economic momentum amid risks from shrinking exports and tepid domestic consumption.
Mathee Supapongse, an assistant governor of the monetary policy group and the MPC's secretary, said the majority of members called for further monetary easing to counter economic sluggishness.
- Earlier report: Central bank unexpectedly cuts rates
"The move should help in mitigating a further economic slowdown," he said.
"Risks to financial stability remain, but they have not recorded an upsurge and the committee's current priority is to stimulate the economy. It [the rate cut decision] is deemed as injecting a harsh drug to revive the economy."
Mr Mathee said the cut still left room to manoeuvre in response to future economic conditions.
The rate-setting panel voted 5:2 to lower the benchmark interest rate to 1.5% from 1.75%.
The minority members wanted to maintain the previous rate, judging that the monetary policy space for further easing is limited and a recent pickup in fiscal stimulus should lift economic growth to a certain degree.
They also sought a clearer assessment of policy impacts on the economy and financial stability before making any rate-cut decision.
The MPC comprises three central bank executives and four external members. The results from the latest meeting show that at least one member from the central bank preferred the cut.
Finance Minister Sommai Phasee said he agreed with the MPC's move, citing the country's shrinking exports as an indicator that Thai shippers need help.
"Our export contraction for three months in a row has definitely affected our entire economy, and the central bank hopes to see a weaker baht in order to help Thai exporters be more competitive with peers," he said.
Amonthep Chawla, CIMB Thai Bank's head of research, said the MPC's latest cut came as a surprise in terms of timing, as the panel usually waits for economic data to be released before making a policy call.
"We have not seen two consecutive rate cuts for a long time, but an economic crisis is not anticipated," he said. "The MPC probably wants to make a pre-emptive move of lowering its policy interest rate, as it might see an economic-oriented problem."
He suggested that a "new normal" of record-low interest rates could emerge if the economic doldrums continue.