Thailand Keeps Benchmark Rate Unchanged as Brexit Risks Dominate

[webfact]

Thailand Keeps Benchmark Rate Unchanged as Brexit Risks Dominate
Suttinee Yuvejwattana

BANGKOK: -- Thailand kept its benchmark interest rate unchanged for a ninth straight meeting, opting for stability as global financial markets brace for the outcome of the U.K.’s referendum on whether to exit the European Union.

The Bank of Thailand held its one-day bond repurchase rate at 1.5 percent, with monetary policy committee members voting unanimously in favor, it said in Bangkok on Wednesday. All but one of the 22 economists surveyed by Bloomberg News predicted the decision, with UBS AG forecasting a 25 basis-point cut.

Policy makers in the Southeast Asian nation have been reluctant to ease monetary policy despite inflation at close to zero and weak consumer spending, judging that lower interest rates would provide little support to an economy undermined by “structural” factors.

Full story: http://www.bloomberg.com/news/articles/2016-06-22/thailand-keeps-benchmark-rate-unchanged-as-brexit-risks-dominate

-- Bloomberg 2016-06-22

[Brer Fox]

The economy is undermined by “structural” factors so say the policy makers. Is that code for "the country is run by a military junta"?

[Berty100]

Policy makers in the Southeast Asian nation have been reluctant to ease monetary policy despite inflation at close to zero and weak consumer spending,

With inflation at almost zero, I wonder why prices at big C increase almost hourly.

[nev]

Policy makers in the Southeast Asian nation have been reluctant to ease monetary policy despite inflation at close to zero and weak consumer spending,

With inflation at almost zero, I wonder why prices at big C increase almost hourly.

Greed?.

[Strangebrew]

must be Thai ISSUE 1,419 MILLION going to there head.

[Srikcir]

The economy is undermined by “structural” factors so say the policy makers. Is that code for "the country is run by a military junta"?

I think it's now more a situation that the structural factors have so undermined the Thai economy that it wouldn't matter who leads the government now.

Prayut has essentially doubled down on the alleged debt caused by Yingluck's rice pledge program with his own series of populist and/or Pracharat programs. The next elected government (whenever it occurs) will likely face a significant level of debt not experienced by previous governments. Rates cuts by thenmselves will not invigorate the economy.

[Jonmarleesco]

The growth predictions are looking ever more optimistic.