Bank of Thailand Flags Risk of a Possible Additional Interest Rate Cut in the Future

November 5, 2014

The benchmark interest rate was left at 2.0%, its level since a 25-basis point reduction in March 2014.  That cut was the sixth such drop since November 2011, and a released statement revealed a dissenting vote in favor of easing policy now.

The committee expresses concerns regarding greater downside risks from global growth and the timeliness of public investment spending. One member assessed that further accommodation is needed in order to reinforce the momentum of economic recovery.

The statement slightly downgraded views on recent growth, domestic demand and exports.  Note is also made that inflation has eased recently.  The decision to keep the interest rate unchanged for now passed by a 6-1 vote.

Copyright 2014, Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.

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