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.