BOT keeps rate unchanged
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The Bank of Thailand decided to keep the policy rate unchanged, in light of greater external risks and greater volatility in the financial markets that may spur need for further rate cuts later of the year.
The policy rate is kept at 1.50 per cent per annum.
After the Monetary Policy Committee meeting yesterday, its secretary Jaturong Jantarangs said that the MPC members assessed that judging from the fourth-quarter performance, the Thai economy was expanding as anticipated, supported mainly by domestic demand. They also viewed that external risks increased from major trading partners’ economies, shifting global trade structure, and low commodity prices. In addition, monetary policy divergence among advanced economies continues to influence capital flows and exchange rate movements.
"In deliberating monetary policy, the committee judged that monetary policy remained accommodative, and the policy space should be preserved, while being mindful of risks to financial stability. Therefore, the policy rate should be kept on hold at this meeting,” Jaturong said.
He stressed that the committee stands ready to utilise an appropriate mix of available policy tools in order to support the economic recovery, while ensuring financial stability.
