Bank of Thailand Key Rate Left at 1.25% As Expected

July 15, 2009

The one-day repo policy rate in Thailand was left at 1.25%.  Economic and world financial conditions have improved gradually, and officials project more of the same, assuming a sustained global upturn and intensifying fiscal stimulus.  Although the monetary stance is deemed to be accommodative, the bank’s statement today reiterated that subdued inflation allows scope to ease further if that becomes necessary.  From a peak policy rate of 3.75% after a 25-bp hike on August 27, 2008, policymakers cut such by 100 bps on December 3, 75 basis points on January 14 of this year, 50 bps on February 25, and 25 bps on April 8, which was the last time they changed it.

Copyright Larry Greenberg 2009.  All rights reserved.  No secondary distribution without express permission.


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