At its 30 November monetary policy meeting, the last of this year, the Bank of Thailand (BoT) decided to cut the one-day repurchase rate by 25 basis points to 3.25%, in a decision broadly expected by market analysts. The move follows a single pause in the tightening cycle at the 19 October meeting, after the Bank had pushed up the key policy rate nine times from a record low of 1.25%. In their statement, monetary authorities underscored concerns about the global economic outlook, which has deteriorated in the wake of the Eurozone sovereign debt crisis. According to the BoT, the probability of recession in the common-currency zone is increasing. Moreover, the Bank reckons that recovery remains fragile in the U.S. economy, despite the slight improvement witnessed recently. Officials also stated that economic growth in Asia is moderating as a result of softening global demand. Meanwhile, monetary authorities acknowledged that the floods caused substantial damage to property and immense disruption to business activity, particularly in the manufacturing sector, which has had to stop production, and thereby created supply chain disruptions. Consequently, officials expect ?economic growth in the last quarter and the whole of 2011 to be much lower than previously projected.? Even though inflation pressures persist due to flood-related shortages, however, the Bank stated that ?the weakening of the global economy would curtail price pressures to some extent.? The bank stated that the current accommodative stance is likely to provide support for reconstruction and investment.
Thailand Monetary Policy
Bank of Thailand cuts rates to counter floods impact amid worsening global outlook
November 30, 2011
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Thailand Economic News
October 17, 2016
On 13 October, Thailand’s beloved King Bhumibol Adulyadej died after a 70-year reign and his successor, Crown Prince Maha Vajiralongkorn, has declared his wish to wait until he ascends the throne.
October 4, 2016
In September, consumer prices inched up 0.04% from the previous month, which contrasted the 0.04% decrease observed in August and overshot market expectations of a 0.1% increase.
September 30, 2016
In August, the trade balance recorded a USD 2.1 billion surplus, which was above the USD 0.7 billion surplus observed in the same month of the previous year and was also higher than the USD 0.8 billion surplus registered in July.
September 30, 2016
In August, manufacturing production increased 3.1% over the same month last year, which was a sharp upswing from the 5.0% contraction seen in July and marked the highest reading in over three years.
September 14, 2016
At its 14 September monetary policy meeting, the Bank of Thailand (BoT) decided unanimously to keep the one-day repurchase rate at 1.50% as the markets had expected. In its press release, the Bank commented that the Thai economy had accelerated in the second quarter on the back of strong private consumption and resilient public expenditure.