BANGKOK, 14 June 2012 The Monetary Policy Committee (MPC) has reached the decision to peg the policy interest rate at 3% in order to stimulate the Thai economy.
Bank of Thailand Assistant Governor Paiboon Kittisrikangwan has revealed that the Monetary Policy Committee (MPC) has unanimously resolved to retain the policy interest rate at 3% with the objective of stimulating the Thai economy. The decision had been prompted by the uncertainty of the global economy, especially the economic crisis in Europe. Mr. Paiboon pointed out that the situation in Greece and Spain has caused a decline in the overall European economy and might even impact the recovery of the US economy as well as that of Asia, which is slowing down due to the economic conditions of China and the world.
Determined to keep a close watch on the global economy, the MPC stands ready to adjust the country’s monetary policy to suit the situation. Meanwhile, the committee is still confident that Thailand’s GDP in 2012 will grow at no less than 6%.
The MPC will, on 18th June, hold for the first time a meeting with the Financial Institutions Policy Committee to monitor the global economic situation relating to the stability of the monetary market.
Meanwhile, the BoT Vice President said that the Thai economy, during the first quarter of 2012, has bounced back to see a positive growth of 0.3% and is expected to continue growing due to the relaxed monetary situation and the government’s economic stimulus policy. However, the export situation must still be closely monitored given potential risks from the escalating crisis in Europe.
Meanwhile, the pressure from inflation is declining in line with the decrease in fuel and consumer goods prices combined with the tendency of a weaker economy. However, the 300-baht minimum wage policy and the energy price adjustment still put inflation estimation at a high rate.
(NNT : suwit)