Bank of Thailand Monetary Policy on Hold

May 2, 2012

For a second straight meeting, Thai monetary officials decided to leave the 1-day bond repo rate at 3.0%.  Today’s vote was unanimous.  A statement from the authorities to explain their decision called the current stance “appropriate” even though economic recovery last quarter progressed faster-than-expected from devastating floods in late 2011. Inflation was called manageable.  Such receded to an in-target 2.5% in April but will likely back up higher.  The central bank benchmark was lifted nine times by 25 basis points apiece between July 2010 and August 2011 but was cut by like amount at end-November and late January in response to the floods.  Those reductions are now contributing to a recovery of domestic demand, although external risks persist.

Copyright 2012, Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.

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