Thailand: Bank of Thailand stays put
March 21, 2012
At its 21 March monetary policy meeting, the Bank of Thailand (BoT) decided to maintain the one-day repurchase rate unchanged at 3.00%. The move was broadly expected by the market and follows two consecutive 25 basis-point rate cuts in November and January. In its accompanying statement, monetary authorities acknowledged that economic activity is gaining traction, following the impact of the floods. According to the BoT, ?latest indicators pointed towards improvements in all key areas of the economy and manufacturing production remained on track to return to normal levels by the third quarter of this year.? In addition, monetary authorities pointed out that inflationary pressures remain at bay in the short-term, although upside risks persist amid rising global oil prices. Finally, monetary officials recognised that the current policy stance is appropriate in supporting recovery, while it is still consistent with keeping inflation in line with the BoT target. The next monetary policy meeting is scheduled for 2 May.
Author: Ricardo Aceves, Senior Economist