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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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 .

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").

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

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.

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.

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