BANGKOK- Thailand’s policy interest rate is at an adequate level to address economic risks as the recovery is uneven, while the current inflation target range of 1 percent to 3 percent remains appropriate, the central bank said.
After resisting repeated calls by the government for easing, the Bank of Thailand’s monetary policy committee on Oct. 16 unexpectedly voted 5-2 to cut the one-day repurchase rate by 25 basis points to 2.25 percent, the first decrease since 2020. Two members voted to keep the rate steady.
“The current policy rate remained adequate to address risks to the outlook for the economy, inflation, and financial stability,” according to the minutes of the meeting released by the BOT on Wednesday.
The policy rate should remain neutral and consistent with economic potential, and it should not be so low that financial imbalances would build up in the long term, senior central bank director SurachTanboon told a monetary policy forum.
The next rate review is on Dec. 18.
BOT Deputy Governor Piti Disyatat told Reuters last week the current policy stance was well balanced and the rate cut was a recalibration, not the start of an easing cycle.
