Wednesday, July 25, 2012

Thailand keeps interest rate at 3%

    The Bank of Thailand kept its benchmark one-day repurchase rate steady at 3.0 percent, as expected, judging the policy stance accommodative enough to cushion the economy against the global risks.
    But 2 of the bank's 7-member Monetary Policy Committee voted in favor of cutting the rate, the bank said in a statement.
    The bank said the Thai economy continued to recover from the floods last year and was operating close to its potential, with domestic demand supported by low interest rates, strong credit and government stimulus. These factors should continue to sustain private consumption and investment.
    "The majority of members viewed the current monetary policy stance to be accommodative enough to support domestic economic growth going forward and cushion, to some degree, against global economic risks," the bank said.
    The bank said the worsening global economic outlook had started to impact the Thai export sector and the growth outlook had been revised downward, which has moderated inflationary pressures and inflation is expected to remain within the bank's target range.
    The Thai central bank, which targets a 3.0 percent inflation rate, most recently cut its policy rate by 25 basis points in January after cutting it by the same amount in November.
    In June, inflation inched up to 2.6 percent from 2.5 percent the previous month.


Post a Comment