Bank of Thailand’s Interest Rate Again Held at 1.50%

March 28, 2018

A sole dissenting vote in favor of raising the Thai central bank interest rate to 1.75% was outgunned by a 6-vote majority of the Monetary Policy Committee that preferred leaving the rate at 1.5%. The level has been there since a pair of 25-basis point cuts in March and April of 2015. Six earlier quarter percentage point reductions were made from November 2011 to March 2014. A released statement today raises its assessment slightly of economic growth in the near term but also observes that inflation is now projected to rise more slowly than believed previously as a result of lower fresh food costs. Inflation is below target, and the statement acknowledges that even with the current accommodative policy, a return of inflation to the desired level is a process that “could take some time.” Officials are also monitoring external risks.

Copyright 2018, Larry Greenberg. All rights reserved. No secondary distribution without express permission.



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