Thailand's benchmark interest rate to remain at 1.5%

 

 

BANGKOK, 29th March 2018 (NNT) - The Monetary Policy Committee has announced it will maintain the benchmark interest rate at 1.5 percent to support continued economic expansion and facilitate maintenance of the inflation rate within its target range. 

The committee also adjusted its GDP forecast for 2-18 from 3.9 to 4.1 percent due to positive external factors and an export and tourism sector that continues to grow. 

The decision was in line with the opinions of Finance Minister Apisak Tantivorawong who expressed the view that current rates would accommodate the current trend of economic recovery. The finance minister added that the country's export sector may be affected by trade disputes between China and the United States which may impose tax barriers that will affect the global economy.

 

-- nnt 2018-03-29

Reading between the lines, it would seem that Thailand has a domestic debt issue. My take is that an increase in rate could cause domestic  borrowers to default in increasing numbers.