Policy rate remains unchanged at 1.5 percent

[webfact]

Policy rate remains unchanged at 1.5 percent



BANGKOK: -- The Fiscal Policy Board agreed at its meeting today (Wednesday) to keep the benchmark policy rate unchanged at 1.5 percent citing the economic growth rate which is close to the projection made at the last meeting.

Secretary of the board, Mr Chaturong Chantharangsee, said that the board forecast the growth rate to register 3.1 percent with a downside risk that the actual growth rate might be smaller than projection due mainly to lower investment of the private sector, limited business expansion, weak private sector’s consumption, especially households in the farming sector which is hard hit by drought.

He said that economic recovery is likely to be slow and weak while global economic recovery remains fragile. He noted that the occasion strengthening of the baht against other currencies of Thailand’s trading competitors does not bode well for economic recovery.

Full story: http://englishnews.thaipbs.or.th/content/162927


-- Thai PBS 2016-05-12

[Srikcir]

The few reasons cited for not lowering the rate are much better reasons for lowering the rate.

Not lowering the rate in effect strenghtens the baht, ie., against other ASEAN countries.

Sounds like Junta voodoo economics at work.

[elgordo38]

The few reasons cited for not lowering the rate are much better reasons for lowering the rate.

Not lowering the rate in effect strenghtens the baht, ie., against other ASEAN countries.

Sounds like Junta voodoo economics at work.

Yes they are slow to join the race to the bottom but that will change. Thailand is an exporting country and these countries are feeling the most pain worldwide. Then saving face is another big deal here. Unfortunately markets are self regulating and soon the mask must come off. The banks are ahead of the curve. I have another tranche of money coming due and I hear the rate is down to 1.3% With the lack of a decent interest rate gold is starting to look more and more like an all in move. Especially if the baht in the future reaches its true value.