Thailand: Bank of Thailand keeps rates on hold
October 16, 2013
At its 16 October monetary policy meeting, the Bank of Thailand (BoT) maintained the one-day repurchase rate at 2.50% for the third consecutive meeting. The decision was widely expected by the markets. The BoT pointed out that the national economy is showing signs of improvement. While the external sector recovers amid stronger global demand, investment and private consumption have stabilized. Regarding price developments, the Bank acknowledged that consumer prices have decreased, mainly due to subdued domestic demand. The decision to keep the rate unchanged was unanimous. According to the Bank, the "current accommodative monetary policy remains appropriate in supporting economic recovery in the periods ahead, given uncertain global economic and financial conditions." FocusEconomics Consensus Forecast panelists expect the one-day repurchase rate to end 2013 at 2.92%. In 2014, the panel expects the monetary policy rate to end the year at 3.20%.
Author: Dirina Mançellari, Senior Economist