Thailand holds key rate, sees more risks to growth

Bangkok

THAILAND's central bank kept its key interest rate unchanged on Wednesday, as expected, saying the current monetary policy remained conducive to economic recovery.

The Monetary Policy Committee (MPC) voted unanimously to leave the one-day repurchase rate at 1.50 per cent, where it has been since April 2015, and a quarter point above the record low during the global financial crisis. "The committee judged that the Thai economy would continue to expand at a rate close to the previous assessment but face greater downside risks on the domestic front," the MPC said. "Current monetary conditions eased further as bond yields remained low, and commercial bank lending rates declined," it said. "Therefore, the policy rate should be kept on hold to preserve policy space."