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INTEREST RATE
Policy remains supportive to recovery: BOT
The Nation


Jaturong Jantarangs, MPC secretary

BANGKOK: -- The Bank of Thailand today decided to maintain the policy rate at 1.5 per cent, citing monetary conditions and exchange rate remain supportive to the economic recovery.

The Monetary Policy Committee voted unanimously to keep the rate unchanged.

It is the first MPC meeting since the central bank welcomed the new governor, Veerathai Santiprabhob.

At the press conference, Jaturong Jantarangs, MPC secretary, said that monetary conditions and exchange rate remain supportive to the economic recovery, despite the Thai economy continuing to face downside risks, especially from the global economy, structural limitations and uncertainty in the global financial markets.

"Against this backdrop, the committee deemed maintaining the policy rate as appropriate at this meeting," he said.

The decision followed the slow recovery witnessed in the third quarter.

Domestic demand improved slightly on the back of increased spending on non-durable goods and services, as well as investment in certain business sectors. Meanwhile, public expenditure increased, and additional fiscal stimulus measures should provide some support to the recovery. However, the Thai economy faces more negative factors from abroad, particularly a slowdown in the Chinese and other Asian economies, which weigh down Thailand's merchandise exports and investors' confidence.

Meanwhile, inflation continued to stay in negative territory due to a substantial fall in oil prices from last year. However, it is projected to rise gradually, and to turn positive in the first quarter of next year. Meanwhile, deflationary risks remain contained as demand continues to expand and core inflation is still positive.

"The Committee will closely monitor global financial market developments as well as the impacts of fiscal stimulus measures on the economic recovery," Jaturong said.

The Thai baht today edged up to 35.5 per US dollar as of 2.42pm, from yesterday’s closing of 35.56.

Source: http://www.nationmultimedia.com/business/Policy-remains-supportive-to-recovery-BOT-30272259.html

-- The Nation 2015-11-04