BANGKOK – The Monetary Policy Committee (MPC) has decided to maintain the benchmark interest rate at 1.5% per year, as the Thai economy continues to recover slowly.
According to Assistant Governor of the Bank of Thailand (BoT) and MPC Secretary Jaturong Jantarangs, the committee’s decision to keep the interest rate at 1.5% had anticipated a return to target inflation in the second half of 2016.
Mr. Jaturong asserted that the current monetary policy has been supporting economic recovery and no changes would be necessary at this point. The MPC has forecast 3.1% economic growth for 2016. However, the export sector will likely contract further this year by 2.5%, due to the global economic slowdown.
Regarding the UK’s referendum today on whether to leave the European Union, the MPC Secretary said it will only have a short-term impact on currency markets and the global economy. Investors have reportedly said the impact on Thailand will either be in the medium or long term, as global trading is expected to undergo structural changes.
