Thai central bank seen holding key rate steady despite weak growth: Poll

REUTERS

 

BANGKOK: -- Thailand's central bank is expected to leave benchmark interest rate steady for a 13th straight meeting at its policy review this week despite a slow economic recovery, a Reuters poll found.

 

All 18 economists surveyed forecast the central bank's one-day repurchase rate THCBIR=ECI would be kept at 1.50 percent, near a record low, when its monetary policy committee (MPC) meets on Wednesday - its last review of the year.

 

Thailand's policy rate has been unchanged since April 2015, and is just a quarter-point above the record low implemented during the global financial crisis.

 

Full story: http://www.reuters.com/article/us-thailand-economy-rates-idUSKBN1480EW

 

-- © Copyright Reuters 2016-12-20

 

3 hours ago, webfact said:

leave benchmark interest rate steady for a 13th straight meeting

Insane as far as exports are concerned and Thailand won't see any increase in foreign investment in 2017.

 

Why would they decrease the rates? This policy has not worked anywhere else and is only an instrument to increase cheap debt and kicking it down the road.. US & EU has done it for the last 8 years and Japan for 20.

 

Show me one country where zero interest rate policy actually has worked. Unless of course someone believes the official numbers coming out of Washington and Brussels, e.g. that US has below 5% unemployment. Laughable.

 

 

 

 

10 hours ago, ThailandLOS said:

Why would they decrease the rates? This policy has not worked anywhere else and is only an instrument to increase cheap debt and kicking it down the road.. US & EU has done it for the last 8 years and Japan for 20.

 

Show me one country where zero interest rate policy actually has worked. Unless of course someone believes the official numbers coming out of Washington and Brussels, e.g. that US has below 5% unemployment. Laughable.

 

 

 

 

People are also holding record debt right now as well. They did not get their overnight. They either got there by borrowing money, and spending that, or buying things on credit. Surely this alone must stimulate the economy when people are borrowing to spend more.

 

When you have a huge number of the population in debt, when you raise interest rates there debt payment increases also. So in essence they have less money to spend on luxury items. Perhaps one shouldn't look at the  good low interest rates provide but rather what harm high interest rates cause.

 

Hugh Interest Rates curve Inflation, but this is only because unemployment rates go up, creating less of a demand for wage increases, servicing debt goes up meaning people have less excess money to spend, and borrowing costs go up, causing people to borrow less and thus spend less. 

Hold the rates,while inflation rises,so your cash in

the bank,just keeps losing its value.look after the

people that are in debt,because they are the majority.

regards worgeordie

Lower interest rates create more asset bubbles, and not consumption because household debts are at record highs.

 

Higher interest rates would punish those already struggling to service their debts.