Bank of Thailand

December 16, 2015

The monetary policy rate in Thailand was left unchanged at 1.5% by a unanimous vote of policymakers.  Such was reduced six times between November 2011 and March 2014 by a total of 150 basis points to 2.0%.  In 2015, two additional reductions of 25 basis points were implemented in March and April.  The tone of a statement released after the final scheduled meeting of this year has a dovish tone, observing negative headline inflation and a continuing contraction of exports.  However, “deflationary risks remain contained as demand continues to expand and core inflation is still positive, consistent with medium-term inflation expectations of the public.”  And, “given financial stability considerations and a potential rise in financial market volatility due to monetary policy divergence among advanced economies, the policy interest rate should be kept unchanged at this meeting.”  The statement concludes by reassuring that “the Committee stands ready to utilize an appropriate mix of available policy tools in order to support the economic recovery, while ensuring financial stability.”

Copyright 2015, Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.



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