Bank of Thailand Maintains 1.5% Interest Rate
November 9, 2016
The 1.5% one-day central bank repo rate, lowest since June 2010, has been at that level since back-to-back 25-basis point reductions in March and April 2015. There were six previous cuts of the same size administered from November 2011 to March 2014. A statement released after the latest monetary policy review called the current stance “accommodative and conducive to the economic recovery” and suggested that in the face of potential domestic and external risks, it’s important to retain policy flexibility in case things deteriorate.
The list of mentioned risks includes baht appreciation, “uncertainties stemming from political developments in the US and Europe, concerns over the European and Chinese financial sectors, the fragile global economy” and a possibility of fewer Chinese tourists than assumed. Growth is positive, but officials now think it will take longer for inflation to rise back to target.
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Tags: Bank of Thailand