Thailand’s central bank left its key interest rate unchanged after a surprise cut in October, warning of rising future uncertainties as it resists government calls for further policy easing.
The Monetary Policy Committee voted unanimously to maintain the one-day repurchase rate steady at 2.25% at Wednesday’s meeting, a decision expected by 21 of the 23 economists surveyed by Bloomberg.
The central bank sees the current rate as “consistent” with the economic outlook and inflation that is trending towards the target range, along with the maintenance of economic and financial stability in the face of “higher uncertainties” going forward, it said in a statement.
The Bank of Thailand has stressed the importance of maintaining its neutral stance as the economy picks up and inflation slowly rises toward its 1%-3% target. Governor Sethaput Suthiwartnarueput earlier this month said the bank will pursue a “robust” monetary policy that can effectively cope with high uncertainties and unintended consequences facing the global economy.
The baht held its loss of 0.1% against the dollar after the rate announcement, while the benchmark index reversed gains to trade little changed.
See also: Bank of Thailand sees inflation in 1% to 3% range through 2026
The bank maintained its forecast of 2.7% growth for 2024 and forecast an expansion of 2.9% in 2025.
Chart: Bloomberg
