The Fiscal Policy Committee of the Bank of Thailand voted 6 to 1 to maintain the policy rate at two percent due to slower economic recovery, said Mr Methi Supapong, secretary of the committee.
He said that a member of the committee would like the policy rate to be slashed by another 0.25 percent with the hope that the lower policy rate would help stimulate economic recovery.
The committee projects sustained economic recovery in 2015, and deems that the current monetary policy is sufficiently accommodative and does not hinder the ongoing recovery. The stance is also consistent with long‐term financial stability.
said the Bank of Thailand official statement
The committee, he added, has assessed that Thai economy for the third quarter has the tendency to expand below projection due to slow recovery of consumption, lower than expected government spending and weak exports while global economy has expanded less than projection although the US economy has improved but economy of Japan and Europe remains weak.
The committee expected that exports will pick up next year in accordance with global economic expansion, said Mr Methi, adding that the Bank of Thailand would have to review its economic assessment next year if exports fail to pick up and government spending slows down.
The global economic recovery was slightly weaker than expected, with greater growth differentials across regions. The US economy continued to recover steadily, while recovery in the euro area and Japan remained tepid, with risks of a further slowdown.
said the Bank of Thailand official statement
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