Thailand keeps policy rate at 3% as economic recovery continues

By Tali David

Minneapolis, June 13 - The Monetary Policy Council of the Bank of Thailand voted unanimously at a meeting on Wednesday to maintain the policy rate at 3%, according to a bank press release.

The rate was cut from 3.25% in January.

In the release, assistant governor Paiboon Kittisrikangwan said that Thai economy recovered faster than expected in the first quarter. This positive growth momentum was expected to be sustained going forward on the back of accommodative monetary conditions, robust private loan growth and the implementation of government stimulus measures.

The balance of risks for the Thai economy was skewed toward growth rather than inflation, primarily reflecting heightened global economic risks stemming from the large degree of uncertainty surrounding the economic problems in Europe, Kittisrikangwan said.

The council said it deemed it appropriate to maintain an accommodative monetary policy stance in order to support a firm recovery of the Thai economy and temper some of the risks coming from the global economy.

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