BANGKOK, 10 June 2015 – The Monetary Policy Committee (MPC) has resolved to maintain the policy interest rate at 1.5 percent on expectation that the Thai economy will gradually rebound.
Mr Methee Supapongse, Assistant Governor of the Bank of Thailand’s Monetary Policy Group, disclosed that the MPC decided unanimously during its meeting today to keep the interest rate unchanged at 1.5 percent per annum. Despite sluggishness, the committee believed the Thai economy will begin to pick up steadily from now, thanks to the government’s acceleration of budget disbursement and the lively tourism scene.
Following the interest rate cuts at its two previous meetings, Mr Methee said the MPC is evaluating the effects of the move while keeping a close eye on the economic trend. Thus far, he claimed the previous reductions have caused the baht to depreciate and, in turn, provided a boost for the export sector.
Nonetheless, the Assistant Governor conceded that Thai exports will likely see contraction this year, instead of the zero percent growth predicted earlier. He said the MPC will consider revising down its annual growth estimates for the GDP and exports during its June 19 meeting.
