Thailand Central Bank keeps policy rate at record low

BANGKOK, Nov 10 -- The Bank of Thailand (BoT) has kept its policy rate at a record low of 0.5 per cent to help support overall economic growth. 

BoT Monetary Policy Committee (MPC) today voted unanimously to maintain the benchmark interest rate for the 12 straight meetings.

In a statement, MPC secretary Piti Disyatat said the committee viewed the continued accommodative monetary policy would help support overall economic growth and thus voted to maintain the policy rate.

“The ongoing financial and fiscal measures with the focus on rebuilding and enhancing potential growth would play an important part in bolstering the robust recovery of income,” he said.

MPC assessed that the Thai economy had bottomed out in the third quarter of 2021 and entered the recovery phase following the relaxation of containment measures and the re-opening of the country.

Piti said the committee would monitor key factors affecting the economic outlook, namely the outbreak situation following the reopening of the country, the adequacy of fiscal, financial and credit measures and the global energy price pass-through.

“The committee would stand ready to use additional appropriate monetary policy tools if necessary,” he said.

MPC will revise economic forecasts at its next meeting on December 22.

On exchange rates, Piti said the baht relative to the US dollar exhibited more volatile movements owing to monetary policy in advanced economies and uncertainties in the Thai economic recovery outlook.

“The committee will closely monitor developments in both global and domestic financial markets and continue to expedite the new foreign exchange ecosystem, particularly through supporting small and medium enterprises (SMEs) in hedging against risks from exchange rate volatility,” he said.

Starting November 1, Thailand welcome quarantine-free travellers as the kingdom opens its borders in a bid to jumpstart its pandemic-hit economy.

The COVID-19 new infections dropped to 6,978 compared with its peak of more than 20,000 cases in August.

-- BERNAMA