MPC unanimously keeps policy rate at 1.50%
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THE CENTRAL BANK’S Monetary Policy Committee Wednesday voted unanimously to maintain the policy interest rate at 1.50 per cent, said MPC secretary Jaturong Jantarangs.
The committee judged that the economy would continue to expand at a rate close to the previous assessment but face greater downside risks on the domestic front. Nonetheless, current monetary conditions have eased further as bond yields remained low, and commercial banks’ lending rates declined.
Therefore, the Bank of Thailand’s key rate should be kept on hold to preserve policy space, while risks to financial stability from search-for-yield behaviour still warrant close monitoring.
