Central bank maintains key policy rate at 1.5 percent

 

 

The fiscal policy committee agreed to maintain the key policy rate at 1.5 percent, citing clear sign of economic recovery and low inflation pressure which is likely to pick up in the second half of the year.

 

Fiscal policy committee secretary Chaturon Chantharangs said that the Thai economy was showing clearer sign of recovering, resulting from export growth, increased consumption of the private sector, especially the farming sector and growth in tourism.

 

However, he said government spending still remains the key engine to drive the economy while private investment is gradually picking up.

 

He warned that there are risk factors which may affect Thailand’s economic growth, especially from economic and trade policies of the US and China’s economic reforms.

 

Full story: http://englishnews.thaipbs.or.th/central-bank-maintains-key-policy-rate-1-5-percent/

 

-- © Copyright Thai PBS 2017-05-25

9 hours ago, webfact said:

especially from economic and trade policies of the US

The US Federal Reserve just announced that in June it will raise its interest rate. That announcement will put pressure on the baht to strengthen ahead of June. Already a strong baht has affected exports and without relaxation from BoT the baht will further pressure export growth.