Thailand: Bank of Thailand keeps rates on hold
July 9, 2013
At its 9-10 July monetary policy meeting, the Bank of Thailand (BoT) kept the one-day repurchase rate unchanged at 2.50%, in a decision broadly expected by the market. The unanimous decision followed a 25 basis points rate cut in May.
According to the BoT, the global economy is recovering at a slower-than-expected pace. In particular, slower growth in China and the rest of the Asian economies is delaying the recovery in Thailand's exports. Regarding the Thai economy, the Bank noted that economic activity remains sluggish amid slowing domestic demand and exports, whereas, on a positive note, inflationary pressures eased. The next policy meeting will be held on 21 August.
FocusEconomics Consensus Forecast panellists expect the one-day repurchase rate to end 2013 at 2.92%. In 2014, the panel expects the monetary policy rate to end at 3.20%.