Policy rate not changed as BOT prepares for new risks

according to the reporters, it had been decided by the Bank of Thailand to keep the rate of policy unchanged at today`s meeting, possibly to save ammunition for new risks including the Brexit referendum.

As said by Jaturong Jantarangs, secretary of the Monetary Policy Committee, “The committee saw merit in preserving policy space given that the Thai economy would still be facing risks going forward, such as the fragile global economic recovery, monetary policy divergence among major advanced economies, the result of the EU Referendum in the UK and financial stability concerns in China.”

So as to maintain the policy rate at 1.50 percent, the committee had voted cooperatively. One of the seven MPC members was not present at the meeting.

As reported, also the economic growth forecast of 3.1 percent has been maintained by BOT, as set three months ago. It added that as per to the exports this year would decline 2.5 percent, rather than fall 2 percent.

According to last year growth of GDP, it was 2.8 per cent. Export traditionally a growth driver, had been declined the past three years.

As said by the Charnon Boonnuch, economist at Tisco Securities, they think that the Thai economy is determining out.

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