Bank of Thailand’s Monetary Policy Committee voted unanimously to maintain its policy interest rate at 2% per annum, citing positive economic recovery and reduction of political uncertainties.
Mr. Paiboon Kittisrikangwan, Secretary of the Monetary Policy Committee (MPC), justified the BOT decision to keep its main rate stable citing the global economic recovery, led by major economies like the US which continued to grow on the back of stronger labour and housing markets.
Recovery in the euro area and Japan continued at a moderate pace. In China, risks in the financial sectors subsided, while the downside risks to growth diminished in the short term. Asian economies remained stable, with exports partially offsetting slowing domestic demand.
also stated the MPC.
Concerning the Thai economy,
It contracted in the first quarter of 2014 as political uncertainties weighed on domestic demand and tourism. Moderate recovery in exports of goods could not compensate for falling domestic demand.
Following a significant reduction of political uncertainties, the economy should benefit from improving public and private spending. A slow recovery in exports of goods and tourism however pose downside risks to growth.
according to the official statement published by the BOT today.