Bank of Thailand

March 29, 2017

Thailand’s Monetary Policy Committee retained a 1.5% policy interest rate yet again. It’s been at this low level since 25-basis point cuts in March and April of 2015. Six other 25-bp reductions were implemented earlier from November 2011 through March 2014. A released statement justified a continuing need for a very accommodative stance despite an improved GDP outlook and the expectation that inflation will rise gradually because of the abundance of economic risks facing Thailand. Most of these are external developments beyond the central bank’s control such as a more protectionist U.S. trade policy, China’s uncertain financial stability, unsettled politics and overly indebted banks in Europe. Within Thailand, business loan quality has deteriorated, and the baht is stronger. All of this maintains a need for a monetary policy that supports domestic financial stability and promotes economic growth.

Copyright 2017, Larry Greenberg. All rights reserved. No secondary distribution without express permission. 



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