Bank of Thailand Interest Rate Kept Unchanged
August 26, 2009
Thailand’s policy interest rate will remain at 1.25% after the third meeting since being last cut by 25 basis points on April 8th. The decision was expected especially in light of positive second quarter-over-first quarter GDP growth, a development noted in the statement released by the Bank of Thailand. Officials called the current policy stance “appropriate” for supporting recovery without generating inflationary pressure. 1.25% represents a 5-year low and follows cuts of 25 basis points in April, 50 basis points in February, 75 basis points in January, and 100 basis points in December. A peak of 3.75% had been maintained from August 27 -December 3rd of last year. CPI inflation swung from plus 9.2% in the year to July 2008 to minus 4.4% in the year to July 2009. GDP increased 2.3% last quarter, cutting the decline from a year earlier to 4.9% from 7.1% in the year to 1Q.
Copyright Larry Greenberg 2009. All rights reserved. No secondary distribution without express permission.
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