BANGKOK, April 3 – Thailand’s Monetary Policy Committee (MPC) today voted five to one to maintain the policy interest rate at 2.75 per cent given concern with the fragile global economy.
Paiboon Kittisrikangwan, Bank of Thailand assistant governor, said the MPC agreed that it is appropriate to continue an accommodative monetary policy stance with caution on risks to a volatile exchange rate, capital flow and financial stability, especially the possibility of a bubble in the highly-dynamic property sector.
Household and personal debts have escalated while the MPC is concerned that a low interest rate may boost household borrowing, he said.
Mr Paiboon said Thailand’s export landscape will gradually improved in accord with the global economy and economic expansion of trading countries.
He insisted that the appreciating baht was not the key element slowing exports, saying that Thailand’s exports have successively increased .
Thailand’s Q1 economic expansion will become less active while domestic demand and the government’s investment in water management and infrastructure projects will be the major driving forces later this year, he said.
The central bank is set to announce an adjustment of Thailand’s growth forecast this year which is slightly higher from the previous forecast of 4.9 per cent.
The announcement will be made on April 12.