Thai central bank maintains policy interest rate at 1.25%

BANGKOK, July 15 (TNA) — The Bank of Thailand (BoT) Monetary Policy Committee on Wednesday maintained its key interest rate at 1.25 per cent for a second time, saying that although the global economy has started to improve it is still in volatile, according to BoT assistant governor Paiboon Kittisrikangwan.
 
The Monetary Policy Committee (MPC) acted to retain its policy interest rate at 1.25 per cent after having last cut the rate by 25 basis points on April 9 to the present level. It first maintained the rate on May 20.
 
Citing the relaxation of monetary policies by a number of countries to help spur economic growth, Mr. Paiboon said the committee decided that keeping the rate at the present level is necessary because Thailand’s economy still depends on exports, government monetary policy to stimulate the economy and the yet-to-be evaluated impact from the influenza type A(H1N1) virus which is impacting Thailand and countries around the world.
 
He said that if the number of tourists visiting the country falls sharply it could affect consumer spending. Thais may also become reluctant to spend money on shopping due to the virus scare.
 
Noting that commercial banks cut their lending interest rate by 25 basis points in May although the BoT maintained its rate at the present level, the country still did not face inflation or deflation, said Mr. Paiboon, adding that it is still unnecessary for the central bank to raise its policy interest rate. (TNA)