Thailand: BoT keeps policy rate at 0.5%

The Monetary Policy Committee left its key interest rate unchanged at a record low on Wednesday, as expected, as the economy showed signs of recovering from the fallout of the coronavirus pandemic.

All seven MPC members of the Bank of Thailand voted unamiously to keep the one-day repurchase rate steady at 0.5% for a fourth straight meeting.

Titanun Mallikamas, assistant governor of the monetary policy group, said the MPC decided to hold the rate to support attempts to revamp the economy. The economic outlook was improving but it continued in a slow pace, he added.

All 15 economists in a Reuters poll had expected the MPC to remain on hold this week after it already cut the rate by 75 basis points this year to support the tourism-reliant economy.

The MPC meeting on Wednesday was the first for governor Setthaput Suthiwart-Narueput after he succeeded Veerathai Santiprabhob on Oct 1.