Interest policy rate kept at 1.5 percent

[snoop1130]

Interest policy rate kept at 1.5 percent
Thai PBS

BANGKOK -- The Monetary Policy Committee today (Wednesday) agreed unanimously to keep the policy interest rate at 1.5 percent unchanged having assessedthat economic recovery for the third quarter has picked up with the prospect that the growth rate for the whole year will slightly exceeded the 2.7 percent projection.

Mr Chaturong Chantharung, assistant governor for monetary policy of the Bank of Thailand, said growth rate for next year would be close to an earlier projection of 3.7 percent.

The Monetary Policy Committee, said Mr Chaturong, felt that monetary situation and exchange rate were still conducive to economic recovery while domestic money market had the tendency to fluctuate as a result of interest rate change in industrialized economies and Federal Reserve’s decision on interest rate.

He said that the central bank needs to brace itself against the risk factors affecting the economy and is ready to ease restrictions on monetary policy.

Source: http://englishnews.thaipbs.or.th/interest-policy-rate-kept-at-1-5-percent

-- Thai PBS 2015-12-16

[Srikcir]

"monetary situation and exchange rate were still conducive to economic recovery"

I didn't realize that flight of foreign capital was conducive to Thailand's economic recovery:

"Foreign investors were net sellers of Thai shares, boosting year-to-date net-sells to Bt133.59 billion." (The Nation 2015-12-17)

It's akin to bailing a sinking ship and usually signals a lowering of interest rates. BOT may be adhereing more to a political policy than an economic monetary policy.