Bank of Thailand keeps interest rate unchanged at 2.5 pct
The Monetary Policy Committee (MPC) of the Thai central bank has decided to maintain the policy interest rate at 2.5 percent for the rest of this year in order to give support to economic expansion, local media reported on August 22.
The Monetary Policy Committee (MPC) of the Thai central bank has decidedto maintain the policy interest rate at 2.5 percent for the rest ofthis year in order to give support to economic expansion, local mediareported on August 22.
The decision came a day after the country'seconomy was announced to have shrunk unexpectedly in the second quarterof the year and there are concerns that the world market's volatility isposing an increasing risk to Thailand's economic growth.
MPCmembers said that they are placing greater emphasis on economicexpansion, and remain concerned over a possible bubble in the realestate sector. However, they decided not to raise the policy rate atthis time because they are also worried about rapidly rising householddebts.
Although the MPC maintained its forecast of 2013's GDPgrowth at 4.2 percent, it admitted there is a risk that growth couldfall below 4 percent.-VNA
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