Thailand keeps policy rate at 2½% as economic expansion slows

By Tali David

Minneapolis, July 10 - The Monetary Policy Council of the Bank of Thailand voted unanimously at a meeting on Tuesday and Wednesday to maintain the policy rate at 2½%, according to a bank press release.

In the release, committee secretary Paiboon Kittisrikangwan said that the global economy expanded less than expected due to China's economic slowdown, which weighed on Asian exports, despite some improvement in the U.S. economy from better housing and labor market conditions. The euro area economies stabilized, while Japanese economic growth improved on government stimulus policies.

Growth of the Thai economy moderated from a slowdown in domestic demand and exports. Private consumption softened as consumers exercised more caution partly as a result of rising debt burden, coupled with waning government consumption stimulus measures, Kittisrikangwan said.

The council said that rapidly changing global economic and financial conditions as well as risks to domestic financial stability warrant continued close monitoring.

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