Central bank keeps policy interest rate unchanged

BANGKOK, Oct 22 (TNA) – Bank of Thailand (BoT) Assistant Governor Paiboon Kittisrikangwon on Wednesday revealed that the Monetary Policy Committee agreed to keep Thailand’s policy interest rate unchanged at 1.25 per cent per annum since the global economic risk had reduced and the international money market had improved.

He attributed the decreased world economic risk and the improved money market sentiment to the easing monetary policy and the implementation of economic stimulus packages by many countries, particularly the major industrialized nations and China.

It resulted in the clear recovery of consumption and exports of Asian countries.

However, he said, the global economic recovery remains exposed to risk factors including the high unemployment, slow investment, and a multitude of non-performing loans incurred by financial institutions.

He noted the Thai economy had improved continuously as could be witnessed by the recovery of industrial production, export and tourism sectors.

Continued recovery stemmed from the implementation of economic stimulus measures and the easing monetary policy.

Domestic consumption and investment are expected to pick up, he said, though it is just at an initial stage, but private investment is still affected by the court injunction against the operations of investment projects in the Mab Ta Put Industrial Estate in the eastern province of Rayong.

He said the central bank will discuss the overall picture of the economy at a press conference on October 29 to announce a revised Thai economic growth projection. (TNA)