Thailand: Bank of Thailand keeps one-day repurchase rate unchanged at 1.50% in September
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. However, there were also some weak spots. Private investment remained low and merchandise exports contracted. While the economy continued to recover gradually, the Bank highlighted the uncertainties in both the domestic and the external fronts. The BoT projects that, “the Thai economy will continue to recover but face risks, particularly those stemming from the fragile global economic recovery and political developments abroad.”
Regarding price developments, the Bank said that inflation had increased slightly in August, driven by higher prices for fresh food (August: +0.3% year-on-year, July: +0.1% yoy). This was still below the Bank’s inflation tolerance range of 2.5% plus/minus 1.5 percentage points, but the Bank expects inflation to accelerate and cross the lower bound of the range within this year.
The next Monetary Policy Committee meeting is scheduled for 9 November.