Thailand: Bank of Thailand keeps one-day repurchase rate unchanged again in November
November 4, 2015
At its 4 November 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 is expected to have recovered in the third quarter on the back of stronger domestic demand. In fact, private consumption for non-durable goods, services and private investment most likely improved in Q3 over the previous quarter. Nevertheless, recent data point to contracting exports in the third quarter as a result of a slowdown in China and other economies in Asia. Looking forward, the government’s recently-approved fiscal package should provide some support for 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 rise gradually, and to turn positive in the first quarter of next year.” The next monetary policy meeting is scheduled for 16 December.
Author: Dirina Mançellari, Senior Economist