Thai policymakers favour accommodative stance as growth lags potential
The monetary policy committee voted unanimously to hold the key rate at 1 per cent, with its next review scheduled for Dec 23.
Thailand needs an accommodative monetary policy stance to help an economy expanding below its potential, according to minutes of the Bank of Thailand’s Oct 28 meeting published on Nov 11. The minutes also called for coordination across policies.
The monetary policy committee’s decision to keep the key interest rate at 1 per cent was unanimous. Policymakers are due to review the rate again on Dec 23.
However, the committee cautioned that keeping rates low while major central banks continued tightening monetary policy could create additional financial stability risks.
