Policy rate to be maintained: KResearch
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The Bank of Thailand's Monetary Policy Committee is expected to maintain the policy rate at the October 16 meeting, said Kasikorn Research Centre.
The research centre said that the rate should stay at 2.50 per cent amid weak growth momentum. Despite a slight recovery in exports, Thailand's economic activities are in a weak mode. KRearch has lowered the 2013 economic growth forecast from 4 per cent to 3.7 per cent.
In this condition, inflation is expected to remain low.
"There are great risks to global recovery pace, particularly the recovery in the US.... Should the fiscal woes be extended, this would affect the global economy," it said.
In this circumstance, it said there is a room for a rate cut in Thailand to boost the economy, but this is to be done in a discreet manner given high household debt to GDP ratio.
