Thailand Monetary Policy February 2016

Thailand

Thailand: Bank of Thailand keeps one-day repurchase rate unchanged in January

February 3, 2016

At its 3 February 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 final quarter of 2015 as it was broadly supported by an increase in public expenditure and a pickup in tourist arrivals, especially from China. Nevertheless, the country’s external sector remains a significant risk to the economy as a slowdown in the other Asian economies is weighing on merchandise exports.

Regarding price developments, the Bank said that inflationary pressures continue to decline due a slower-than-projected recovery in global oil prices, thus causing the annual variation in consumer prices to remain in negative territory. The Bank added that consumer prices will likely recover and start increasing in the first half of 2016. Looking forward, the BoT assessed that, “deflationary risks remain contained as demand continues to expand and core inflation is still positive, consistent with medium-term inflation expectations of the public.”

FocusEconomics Consensus Forecast panelists expect the one-day repurchase rate to end 2016 at 2.01%. In 2017, the panel expects the monetary policy rate to end the year at 2.35%.


Author:, Senior Economist

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Thailand Monetary Policy Chart


Thailand Monetary Policy February 2016

Note: One-day repurchase rate, in %.
Source: Bank of Thailand (BoT).


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