The Monetary Policy Committee (MPC) has agreed to pin the policy interest rate at 1.25% due to potential risks from the political impasse.

According to Mr Paiboon Kittisrikangwan, Assistant Governor of the Bank of Thailand’s Monetary Policy Division, the MPC today made a decision to maintain the policy interest rate at 1.25%. He reasoned that the committee acknowledged the negative effects from the ongoing political tension, which were impeding the country's overall economic growth.

Although the policy interest rate has been pegged, the MPC plans to re-adjust it to the normal level after assessing the economic impact from the political crisis.

Mr Paiboon added that the MPC panel today expressed strong concern over the protracted anti-government protest and would evaluate its overall impact for revising this year's gross domestic product (GDP) projection.

The 2010 economic assessment report is scheduled to be released on 29 April 2010.

via Policy interest rate pegged at 1.25% : National News Bureau of Thailand.

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