Bank of Thailand no interest rate change

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Bank of Thailand no interest rate change 
Bangkok Post: 20 May 2009
Interest rate fixed at 1.25%

By: BangkokPost.com 03:41 PM

The Bank of Thailand's Monetary Policy Committee (MPC) on Wednesday decided not to cut the policy interest rate and to fix the one-day repurchase (RP) rate at 1.25 per cent.

Central bank deputy governor Atchana Waiquamdee said the MPC agreed not to cut the policy interest rate because monetary policy had eased considerably.

The monetary policy had already been loosened in the past few months and there was some room for the financial policy to be applied, Mrs Atchana said.

The MPC expected the global financial crisis could continue to weaken the Asian economy, she said

However, the international monetary market had strengthened while the monetary and financial polices carried out by many countries had started to see positive results.

As for Thailand, she said some economic indicators showed that the contraction had slowed down, the inflation rate remained low, and the amount of spending had increased.

But there were still risks in the road to economic recovery, she warned.