Policy rate kept at 1.5 percent for the sixth time

[webfact]

Policy rate kept at 1.5 percent for the sixth time



BANGKOK: -- The Fiscal Policy Committee has decided to retain the policy rate at 1.5 percent per annum with immediate effect so there is room for the use of interest to spur the economy in case economic expansion falls short of projection, said Mr Chaturong Chantharangsi, secretary of the Fiscal Policy Committee.

This is the 6th time that the rate is kept at 1.5 percent since last April 29.

He explained that the Fiscal Policy Committee has wanted to maintain fiscal stability at a time when the interest rate is kept a low level for a long time in order not to impact on depositors, not to provoke speculation and to watch out for practice in search for yield.

He noted that the economy this year remains at risk of experiencing slower growth due to external risk factors. The main engines of growth come from expenditure from the government’s sector and domestic purchasing power, he said.

The Fiscal Policy Committee predicted this year’s growth rate at 3.5 percent.

Source: http://englishnews.thaipbs.or.th/content/149388


-- Thai PBS 2016-02-04

[Srikcir]

"so there is room for the use of interest to spur the economy in case economic expansion falls short of projection"

Then the BOT can just double its rate cut or 0.5%, ie., in June 2016.