BANGKOK, 22 August 2013 The Bank of Thailand’s Monetary Policy Committee (MPC) on Wednesday resolved to maintain the policy interest rate at 2.5% in order to give support to economic expansion. In the meantime, concern has been raised that the world market’s volatility is posing an increasing risk to Thailand’s economic growth.
The MPC voted 6 to 1 to keep the policy interest rate unchanged at 2.5%, a level it considers a ‘relaxed’ policy rate; such rate is meant to support economic expansion.
According to MPC members, they were placing greater emphasis on economic expansion, and remained concerned over a possible bubble in the real estate sector. However, they decided not to raise the policy rate at this time because they were also worried about rapidly rising household debts. Although the MPC maintained its forecast of 2013’s GDP growth at 4.2%, it admitted there was a risk that growth could fall below 4%.