Bank of Thailand Policy Remains on Hold
June 22, 2016
Thailand’s central bank interest rate has been at 1.50% since the last of eight 25-basis point cuts between November 2011 and April 2015. After unanimously voting to keep that rate level at this month’s meeting, the Monetary Policy Committee released a statement advocating no further cut so as to preserve ” policy space given that the Thai economy would still be facing risks going forward, such as the fragile global economic recovery, monetary policy divergence among major advanced economies, the result of the EU Referendum in the UK (‘Brexit’) and financial stability concerns in China.” The 1.50% interest rate is considered sufficiently accommodative to promote economic economic expansion, ensure financial stability, and enable inflation, which is below its 1-4% target range, to move inside the range during the second half of 2016. The statement promises to monitor for and guard against any ill-effects of the prolonged experience with ultra-low interest rates.
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Tags: Bank of Thailand