Thailand: Bank of Thailand keeps rates on hold
September 5, 2012
At its 5 September monetary policy meeting, the Bank of Thailand (BoT) decided to keep the one-day repurchase rate unchanged at 3.00%, in a move that was in line with market expectations. The decision means that monetary authorities have left the main policy rate unchanged since March. In its statement, the Bank signalled that elevated risks to the global economy persist, highlighting the negative impact to export growth. On the domestic front, monetary officials acknowledged that economic activity showed resilience in the second quarter, buttressed by strong momentum in private consumption and investment. In addition, authorities underlined that government stimulus measures and strong domestic demand should support economic growth going forward. However, the Bank pointed out that export growth may fall short of the Bank's forecast, amid weak global demand. Regarding price developments, the BoT noted that inflationary pressures remain contained. Officials underlined that "domestic demand remained robust and current monetary conditions were accommodative enough to support continued economic expansion". The next monetary policy meeting is scheduled for 17 October.