Connect with us
CGIF-10th-Year-Anniversary

Banking

Thailand Holds Interest Rate After Two Consecutive Cuts

The Bank of Thailand held its one-day bond repurchase rate at 1.5 percent, with monetary policy committee members voting unanimously in favor.

Bahar Karaman

Published

on

The Bank of Thailand held its one-day bond repurchase rate at 1.5 percent, with monetary policy committee members voting unanimously in favor.

Thailand’s central bank held its benchmark interest rate after the government signaled borrowing costs may be low enough following two unexpected cuts.

The Thai economy recovered at a pace close to the assessment at the previous meeting. Economic momentum in the first four months of 2015 softened due to sluggish private consumption and continued contraction in exports, as a result of a slowdown in the Chinese and Asian economies and a shift in global trade structure.

said the Committee in a press realease published earlier today.

Nevertheless, increased disbursement of public investment expenditure and continued improvement in tourism helped shore up the economy. In the periods ahead, the economy is projected to improve gradually, but subject to downside risks from slower-than-expected recovery of the global economy, especially China and other Asian economies.

Headline inflation continued to stay in a negative territory due mainly to energy costs and raw food prices. However, it is expected to pick up in the second half of the year as the base effect of high oil prices begins to wane, coupled with expected rises in oil and raw food prices. Meanwhile, core inflation was still positive but declined somewhat owing to subdued demand-side pressure.

Nevertheless, in the Committee’s assessment, the risk of deflation remains low, as consumption continues to increase, while the prices of most goods and services still increase or stay unchanged, and inflation expectations are close to the inflation target.

On April the 29th, The Bank of Thailand had reduced the policy rate by 0.25 percentage point from 1.75 to 1.50 percent per annum, in a surprise move.

Key considerations for policy deliberation were then as follows.

The Thai economy is projected to recover at a slower pace than assessed in the previous meeting. The pickup in public investment and positive trend in tourism should help shore up the economy, but could not fully offset the weaker-than-expected exports of goods and private consumption in the first quarter of 2015.

Source : Bank of Thailand Website

Comments

Banking

Bank of Thailand steps in to curb recent baht strength

Bank of Thailand accelerates measures to advance the development of the new Thai FX Ecosystem and to limit excessive currency volatilities

Olivier Languepin

Published

on

In a press release published on the 20th of November, the central bank’s Monetary Policy Committee (MPC) has expressed concerns over the rapid appreciation of the baht as this affects the fragile economic recovery.

(more…)

Continue Reading

Banking

Standard and Poor’s maintain Thailand’s credit rating at BBB+

The agency is confident in Thailand’s finances, in spite of measures needed to respond to COVID-19, resulting in a deficit for 2020-2021 and hiking state debt.

National News Bureau of Thailand

Published

on

BANGKOK (NNT) – Standard and Poor’s credit rating agency has kept its level of confidence in Thailand at BBB+, in spite of COVID-19 turmoil and political unrest, but has noted it is monitoring the situation.

(more…)

Continue Reading

Banking

Bank of Thailand keeps policy rate at 0.50 percent

The Committee voted unanimously to maintain the policy rate at 0.50 percent to support economic recovery while placing emphasis on more targeted measures.

Avatar

Published

on

The Monetary Policy Committee (MPC) assessed that despite the recent better-than-expected outturn, the Thai economy would recover slowly and need support from the continued low policy rate.

(more…)

Continue Reading

Cart

Latest

Most Viewed

Subscribe via Email

Enter your email address to subscribe and receive notifications of new posts by email.

Join 13,185 other subscribers

Trending