The Bank of Thailand kept its benchmark interest rate unchanged for an 11th consecutive meeting on Wednesday, the longest streak on record, as an economic recovery continues to gain momentum.
The central bank held its one-day bond repurchase rate at 1.5%, with Monetary Policy Committee members voting unanimously in favour, it announced.
All but one of the 23 economists surveyed by Bloomberg News predicted the decision, with Moody’s Analytics Inc forecasting a 25 basis-point cut.
Consumer confidence rose to a five-month high in August, buoyed by public approval of the nation’s new constitution and better-than-expected economic growth in the second quarter. Finance Minister Apisak Tantivorawong said last month the economy grew “very close” to its potential in the second quarter, supported by government stimulus measures and tourism.
“The country’s economic recovery has steadily gained momentum and is likely to continue in the second half of this year, backed further by public spending and tourism,” Usara Wilaipich, an economist at Standard Chartered Plc in Bangkok, said before the decision.
“The central bank will likely prefer to preserve policy space to cope with unexpected shocks, if any, in the future.”
Consumer prices rose 0.29% in August from a year ago, gaining for the fifth straight month after more than a year of deflation. Bank of Thailand's governor Veerathai Santiprabhob said last month the inflation rate is expected to return to the 1% to 4% target range by early 2017.