Bank of Thailand Interest Rate Kept at 2.75%
April 3, 2013
Thailand’s central bank interest rate has been at 2.75% since a string of three 25-basis point cuts in November 2011, January 2012 and October 2012. This level remains a full 1.5 percentage points above the Great Recession trough of 1.25% that prevailed from August 2009 until July 2010. Nine subsequent hikes were administered to a peak at 3.5% from August 2011 that only lasted for three months. Today’s decision to keep 2.75% drew a single dissenter in favor of a 25-bp cut. The previous policy meeting on February 20th also saw a single dissenting vote cast.
In a statement released today, some moderation of economic growth is predicted along with in-target inflation. Officials warn of global economic risks and identify possible upward price pressures from “supply constraints and higher labor costs ….. Given the fragile state of the global economy, a continuation of accommodative monetary policy stance remains appropriate. However, risks to financial stability, including volatile exchange rate and capital flows, are a concern.”
The next monetary policy meeting in Thailand is scheduled for May 29.
Copyright 2013, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Bank of Thailand
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