Thailand: Central Bank maintains monetary policy rate unchanged
January 9, 2013
At its 9 January monetary policy meeting, the Bank of Thailand (BoT) kept the one-day repurchase rate unchanged at 2.75%, in a decision broadly expected by the market. The verdict marks the second consecutive month in which the Bank keeps rates on hold after an unexpected 25 basis-point cut in October.
The BoT argued that last year's accommodative monetary policy stance "had significantly shored up private sector confidence, supported post-flood recovery, and helped cushion the economy from the global economic headwinds". In addition, the Bank assessed that the economy grew more than expected in the final quarter of 2012, buttressed by healthy private consumption and strong investment. Monetary officials also underlined that exports are showing "incipient signs of a broad-based recovery".
As inflation projections remain within the Bank's target and uncertainties in the global economy persist, the BoT argued that "the current monetary policy stance was appropriate in supporting domestic demand to sustain growth momentum". The next monetary policy meeting is scheduled for 20 February.
Author: Ricardo Aceves, Senior Economist