Bank of Thailand Interest Rate Kept Unchanged

August 26, 2009

Thailand’s policy interest rate will remain at 1.25% after the third meeting since being last cut by 25 basis points on April 8th.  The decision was expected especially in light of positive second quarter-over-first quarter GDP growth, a development noted in the statement released by the Bank of Thailand.  Officials called the current policy stance “appropriate” for supporting recovery without generating inflationary pressure. 1.25% represents a 5-year low and follows cuts of 25 basis points in April, 50 basis points in February, 75 basis points in January, and 100 basis points in December.  A peak of 3.75% had been maintained from August 27 -December 3rd of last year.  CPI inflation swung from plus 9.2% in the year to July 2008 to minus 4.4% in the year to July 2009.  GDP increased 2.3% last quarter, cutting the decline from a year earlier to 4.9% from 7.1% in the year to 1Q.

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


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