Size of rate cut the only question: Economic slowdown, oil prices a challenge.

Byline: Parista Yuthamanop

Apr. 11--A weakening economy and oil price volatility mean the Monetary Policy Committee faces its greatest challenge yet when it meets today to set interest rates.

Analysts believe that the central bank's MPC will slash its one-day repurchase rate, now at 4.5 percent, to help spur growth. The question remains by how much, with many forecasting a reduction of half a percentage point due to low inflation and sluggish growth.

But concerns over rising oil prices -- oil futures inched up yesterday to $66.75 per barrel in London trade -- could push the MPC to cut rates by just a quarter-point. It reduced rates by a quarter-point …