Bank of Thailand maintains policy interest rate at 2.75%


BANGKOK, Nov 28 – The Bank of Thailand (BoT) maintained its policy interest rate at 2.75 per cent, saying the current policy rate remained accommodative and conductive to growth.

BoT Monetary Policy Committee (MPC) secretary Paiboon Kittisrikangwan, announced the outcome of Wednesday’s meeting said the MPC voted unanimously to maintain the policy rate at 2.75 per cent. The MPC will remain vigilant in monitoring global and domestic economic developments and stand ready to take appropriate policy action as warranted.

The MPC viewed that as downside risks to growth subsided with inflationary pressure in check, the current policy rate remained accommodative and conducive to growth.

The Thai economy continued its positive growth momentum from the previous meeting. The global impact has so far remained limited only to export‐related sectors, while the greater‐than‐expected strength in domestic demand appeared to provide sufficient cushion against the adverse impact of the slowdown in exports, the central bank said in its statement.

Going forward, exports were projected to recover in the first half of 2013 on the back of anticipated improvement in the global economy. Private consumption and investment will continue to be the main growth drivers for the economy, supported by strong private sector confidence and accommodative monetary conditions with high credit growth. Inflationary pressure stabilised at a moderate level close to the previous meeting, it said.

The global economic outlook showed signs of stabilisation on the back of the better-than‐expected economic data especially from the US and China. There was sustained improvement in the US labour and housing markets, although the fiscal cliff remains a key risk factor. China’s economy appeared to regain traction with recent strengthening in all key areas including exports, domestic consumption and investment, according to the statement.

Meanwhile, the central bank said the eurozone economy contracted, but the economic and financial outlook of the region was projected to become more stable next year as resolution of the euro debt crisis becomes more concrete and the core economies continued to expand in tandem with improvement in the global economy.

Against this backdrop, the outlook of Asian economies has gradually improved with signs of recovery in exports, and a recent pick‐up in China’s economy.