Bank of Thailand Elects Not to Cut Interest Rate Again
April 23, 2014
The monetary policy committee had reduced its policy interest rate five times – each by 25 basis points – since November 2012 and most recently this year on March 12. By a vote of 6-1 with a sole dissent favoring a sixth such reduction now, the MPC this time chose to leave the rate at 2.0% even though an accompanying statement said GDP likely contracted last quarter and conceded that “economic expansion this year is expected to be lower than previous assessment” because of soft domestic demand largely as a result of “prolonged political uncertainties.” The statement added, “financial conditions are accommodative, and are not
hindering domestic spending. Current monetary policy remains appropriately supportive of the Thai economic recovery.” The next policy meeting is scheduled for June 18 and will coincide with the release of an updated Monetary Policy Report.
Copyright 2014, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Bank of Thailand
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