Bank of Thailand Eases
October 17, 2012
Thailand’s Monetary Policy Committee voted by a 5-2 margin to cut the one-day repo rate by 25 basis points to 2.75%. This was the first change since rate cuts of 25 basis points each last January and in November 2011. The key rate remains 150 basis points above its Great Recession low by 100 basis points under its level prior to December 2008.
A statement explaining today’s action calls the global economic outlook weak, expresses mounting concern about export prospects, and observes inflation to be stabilizing at an acceptable level in Thailand. Accordingly, “with upside risk to inflation contained, the majority of MPC members deemed that monetary policy easing was warranted to shore up domestic demand in the period ahead and ward off the potential negative impact from the global economy, which remained weak and fragile.”
Copyright Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Bank of Thailand
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