Thailand to keep interest rate unchanged

The Bank of Thailand (Photo: bangkokpost.com)

Bangkok (VNA) - Thailand’s central bank plans to keep its interest rate unchanged again on August 8 to aid economic growth as inflation remains benign and policymakers say capital outflows are not currently a concern, according to Reuters.

All 20 economists engaged in the poll predicted the Bank of Thailand (BOT)’s monetary policy committee (MPC), unlike some Asian central banks that have hiked this year, will keep its one-day repurchase rate at 1.5 percent.

That has been the rate policy since April 2015. Thailand’s record low is 1.25 percent.

Gross domestic product (GDP) growth in Southeast Asia’s second-largest economy has picked up but remains heavily reliant on exports and tourism, as domestic demand has lagged.

Annual headline inflation was 1.46 percent in July, the fourth month inside the BOT’s 1-4 percent target after more than a year below it.

Recently, Thai Finance Minister Apisak Tantivorawong said that Thailand had no need to raise interest rates this year as capital outflows were not a worry and a weak baht was good for its exports.

BOT forecast the Thai economy will grow 4.4 percent in 2018, after a 3.9 percent expansion last year.-VNA