Thai central bank keeps key rate at record low, downgrades 2021 GDP outlook

[webfact]

Thai central bank keeps key rate at record low, downgrades 2021 GDP outlook

 

Thailand's central bank is seen at the Bank of Thailand in Bangkok, Thailand April 26, 2016. REUTERS/Jorge Silva

 

BANGKOK (Reuters) - Thailand's central bank left its key interest rate unchanged at a record low on Wednesday, as widely expected, but downgraded its 2021 economic outlook, as the country deals with a fresh outbreak of coronavirus.

 

The Bank of Thailand's (BOT) monetary policy committee voted unanimously to hold the one-day repurchase rate at an all-time low of 0.50% for a fifth straight meeting.

 

All but one of 13 economists in a Reuters poll had expected the BOT to remain on hold after three rate reductions earlier in the year. One analyst saw a 25 basis point cut.

 

The BOT now expects the economy to grow 3.2% next year, rather than expand 3.6% as projected earlier.

 

(Reporting by Orathai Sriring, Kitiphong Thaichareon and Satawasin Staporncharnchai; Editing by Sam Holmes)

 

-- © Copyright Reuters 2020-12-23

 

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[keith101]

China was very smart when it needed to get the economy going by dropping their rate to a flat 0.0 percent whereas Thai are dreamers and want to wait till things improve , they dont need to go as low as China did but a further 0.25 drop could go a long way in dropping the value of the baht with a follow on affect of increased exports but thats just my opinion and im just a stupid Farang right .

[Barnabe]

2 hours ago, keith101 said:

China was very smart when it needed to get the economy going by dropping their rate to a flat 0.0 percent whereas Thai are dreamers and want to wait till things improve , they dont need to go as low as China did but a further 0.25 drop could go a long way in dropping the value of the baht with a follow on affect of increased exports but thats just my opinion and im just a stupid Farang right .

 

You're correct, but that's assuming they want to drop the value of the baht. Judging by their actions, I don't think they do.

 

If they really wanted it, they can just turn the rates negative and start the printing presses (aka "quantitative easing").

[Mavideol]

2 hours ago, webfact said:

The Bank of Thailand's (BOT) monetary policy committee voted unanimously to hold the one-day repurchase rate at an all-time low of 0.50% for a fifth straight meeting.

they are too stingy or they have to protect some Hi So investments .... in the mean time baht keeps swinging up and down 555

[Isaan sailor]

Yep—keep your rates higher than your neighbor’s—and thus you keep those lucrative foreign inflows for a perpetually high Baht, and a crumbling economy.

[digger70]

On 12/23/2020 at 3:43 PM, webfact said:

Thailand's central bank left its key interest rate unchanged

Yep can't upset the Billionaires and their cronies. for sure there be a Kick back there for someone.

[metisdead]

A post using a disallowed reference to the current government has been removed.