Thailand: Bank of Thailand keeps one-day repurchase rate unchanged at 1.50% in November
November 9, 2016
At its 9 November monetary policy meeting, the Bank of Thailand (BoT) unanimously decided to keep the one-day repurchase rate at 1.50%, as market analysts had expected.
The Bank stated that the economy had grown at a broadly stable pace since the last meeting, but that internal and external headwinds had increased. Economic activity continued to be supported by exports, which rebounded in August after recording four months of contraction. Domestically, public expenditure remained a crucial supporter of growth. A national mourning period following King Bhumibol’s death may impede private consumption, though the Bank foresees any deceleration as being only temporary.
Regarding price developments, the Bank said that inflation had softened slightly in October, dampened by lower prices for fresh food (October: +0.3% year-on-year, September: +0.4% yoy). This was still below the Bank’s inflation tolerance range of 2.5% plus/minus 1.5 percentage points. The Bank highlighted that it wanted to leave room to cut interest rates in the future, especially as global uncertainties, which include the latest political developments in Europe and the United States, are threatening the fragile economic recovery.
The next Monetary Policy Committee meeting is scheduled for 21 December 2016.