Thailand: Bank of Thailand keeps one-day repurchase rate on hold at 1.50%
September 16, 2015
At its 16 September monetary policy meeting, the Bank of Thailand (BoT) decided unanimously to maintain the one-day repurchase rate at 1.50% as the markets had expected.
In its brief press release, the Bank commented that the Thai economy will likely recover in the third quarter. Exports continue to contract as a result of a slowdown in China and other economies in Asia. However, an improvement in tourism as well as increased public spending are compensating for weak external demand. Moreover, the recently-announced fiscal stimulus should provide further support to the economy.
Regarding price developments, the Bank said that inflationary pressures continue to decline due a slower-than-projected recovery in global oil prices. Looking forward, the BoT assessed that inflation, “is projected to stay in negative territory for the rest of 2015, before turning positive in the first quarter of 2016, later than previously assessed.” The next monetary policy meeting is scheduled for 4 November.
Author: Dirina Mançellari, Senior Economist