BOT rate expected to stay at 1.50% 

TUESDAY, NOVEMBER 08, 2016
BOT rate expected to stay at 1.50% 

THE BANK OF THAILAND’S Monetary Policy Committee (MPC) is expected to leave the benchmark interest rate unchanged today as it waits for signs of economic recovery and the direction of the US policy rate under the new US president’s administration, according to Kasikorn Research Centre. 

Thailand’s current policy rate is 1.50 per cent.
The consistent recovery of Thailand’s economic indicators could help the MPC decide to maintain the rate, KResearch said.
Several Thai economic indicators, in September and the third quarter of this year, signalled a gradual improvement, with expansion of private consumption as a result of a five-month increase in farm income, it said. 
Thailand’s tourism sector also grew, while the export sector signalled a recovery with export growth for two consecutive months. Nine-month export contraction declined to 0.7 per cent year on year.

Relief plans for farmers 
Along with other Thai government measures, including a new round of relief plans for farmers, gross domestic product is forecast to grow at a rate close to 3.3 per cent for the whole of 2016, the research house said.
All sectors have been keeping a close watch on the United States as the new president’s policies will affect the recovery of the US and global economies, it said. 
If there is no change in the gradual improvement in the US economy from previous months, the Federal Reserve is expected to increase its benchmark rate in December, KResearch said. 
The Fed’s decision on its benchmark rate and uncertainties arising from the US presidential election could prompt volatility and heighten risks for foreign capital to move out of emerging countries, including Thailand. 
KResearch, however, expects liquidity in global money markets to stay at a manageable level. Thailand’s outstanding liquidity in the repurchase market remains high at Bt1.6 trillion, which is adequate for credit expansion.