Thailand holds rate a 7th time as government bets on stimulus
[BANGKOK] Thailand kept its key interest rate unchanged for a seventh straight meeting as policy makers judged that the economy will soon start to see the benefit of stimulus measures introduced by the country's military government.
The Bank of Thailand held its one-day bond repurchase rate at 1.5 per cent, with committee members voting unanimously in favor, it said in Bangkok on Wednesday. Nineteen of 20 economists surveyed by Bloomberg News predicted the decision, while one forecast a 25 basis-point cut.
Prime Minister Prayuth Chan-Ocha's cabinet on Tuesday approved an additional 70 billion baht (US$2 billion) support the housing market, including loans to developers and low-income earners, adding to a series of stimulus measures in recent months aimed at boosting consumption in rural areas. Governor Veerathai Santiprabhob has said that fiscal policies will do more to boost domestic demand than lower borrowing costs.
"With fiscal policies coming in full force, it's not necessary for the central bank to cut rates further," Somprawin Manprasert, chief economist at Bangkok-based Bank of Ayudhya Pcl, said before the decision. "Fiscal policies are more effective in this situation and borrowing costs are already low. The economy should improve in the second half, supported by government stimulus measures and infrastructure investments."
BLOOMBERG
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
International
Norway's wealth fund posts US$109 billion Q1 profit as tech stocks soar
Norway wealth fund backs NatWest plan to buy more state-owned stock
Japanese firms agree on 5.2% pay raise, biggest union group Rengo says
Singapore ready to harvest economic opportunities in the Philippines: Vivian Balakrishnan
Australia regulator flags surge in company insolvencies to 11-year high
Elon Musk stakes fortune on cult following who made him rich