BANGKOK, 21st August, 2024 (WAM) -- Thailand’s central bank left its benchmark interest rate unchanged for a fifth straight meeting after economic growth gained pace and as policymakers await the new prime minister’s policies.
Bloomberg reported that the Bank of Thailand (BOT) voted 6-1 to maintain the one day repurchase rate steady at about a decade-high 2.50 percent at Wednesday’s meeting. This was predicted by all but one of the 24 economists surveyed by Bloomberg News.
The decision to keep borrowing costs at the highest level since 2013 comes as Prime Minister Paetongtarn Shinawatra picks her team and formulate policies including reviewing a US$14 billion cash handout planned by her predecessor Srettha Thavisin.
Southeast Asia’s second-largest economy grew at the fastest pace in five quarters in the April-June period. The monetary authority has kept the key rate steady since the fourth quarter of 2023 even as inflation has stayed below the BOT’s 1 percent-3 percent target.
As the Federal Reserve is expected to pivot to easing as early as next month, emerging currencies including Thai baht have appreciated, further easing imported price pressures and giving policymakers more leeway to support the economy.