Rate unchanged despite negative inflation
Play
The Bank of Thailand today maintained the policy rate, indicating that despite external and internal challenges the current rate is accommodative to economic recovery thanks to bright tourism outlook and new stimulus measures.
The Monetary Policy Committee kept the rate at 1.5 per cent, taking into consideration the economic condition in the second quarter and July.
In a statement, it said that in the periods, exports continued to slide while sluggish growth in household income put pressure on domestic consumer confidence.
Meanwhile, low energy prices are expected to keep inflation in the negative territory until the end of this year, before resurrecting in the first quarter next year. It also noted that deflation risk remains limited, as positive headline inflation indicated increases in non-energy prices.
Economists expected no change in the meeting today, but they expected another 25 basis points cut in the fourth quarter.
