The Bank of Thailand has decided to keep its key interest rate unchanged at 2.5%, despite pressure from the Prime Minister to cut rates in order to boost the economy.
Key Takeaways
- The Bank of Thailand resisted pressure from the prime minister to cut interest rates in order to preserve macro-financial stability and sustainable growth.
- Despite the prime minister’s push for a rate cut, the central bank kept the interest rate unchanged at 2.5%, with two committee members voting to cut it to 2.25%.
- The central bank’s decision was influenced by concerns about the external sector’s slowdown, robust private consumption growth, and the need to maintain financial system stability, with expectations of potential rate cuts in the second half of the year.
The bank cited reasons such as moderating external sector momentum and robust private consumption growth for its decision. While the…
