Thai monetary policy is accommodative and there is space to cut if needed: central bank minutes

[BANGKOK] Thailand’s monetary policy should remain accommodative to support economic recovery and there was space to cut rates further if needed, the minutes of the central bank’s Aug 26 meeting showed on Wednesday (Sep 9).

At the meeting, the Bank of Thailand’s monetary policy committee unanimously voted to maintain the one-day repurchase rate at 1 per cent for a third straight time, saying growth was low and uneven.

“The Committee judged that although policy space remained, further monetary policy easing in a non-crisis environment might yield limited additional benefits relative to its potential side effects,” the minutes showed.

The committee said that as the policy rate was low relative to historical levels, it was important to preserve policy space to respond to unexpected shocks.

It said the Middle East conflict, trade protectionism and risks to inflation needed to be closely monitored.

Last week, BOT Governor Vitai Ratanakorn said monetary policy was fully accommodative and suitable for the economy, which he said was expected to grow 2.3 per cent this year.

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The next policy review is on Oct 28. REUTERS