At its 19 October monetary policy meeting, the Bank of Thailand (BoT) left the one-day repurchase rate unchanged at 3.50%, in a move broadly expected by the market. The decision marked the first pause this year after the Bank pushed up the key policy rate nine times from a record low of 1.25%. In its statement, the BoT underscored concerns regarding the global economic outlook, which has deteriorated in the wake of ?the impasse over the resolution of the euro area's sovereign debt problem? as well as bad news from the United States, where the ?economic data indicated a fragile recovery and market perception of a recession had increased.? However, monetary authorities stated that the Thai economy will continue to benefit from intra-regional trade and strong domestic demand, buttressed by the upcoming government stimulus measures, which should help to cushion growth and limit downside risks. On a negative note, monetary officials anticipate that the recent floods, which partially halted some sectors of the economy, will dent economic growth over the remainder of the year, though reconstruction spending will provide an additional boost to domestic demand going forward. Moreover, even though inflation remains elevated, the Bank stated that ?the current level of the policy rate is appropriate in addressing upcoming inflationary pressure and supporting economic adjustments.? The next monetary policy meeting is scheduled for 30 November.
Thailand Monetary Policy
Bank of Thailand maintains interest rates
October 19, 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.