MPC holds key interest rate at 2.5%
- Published: 10/07/2013 at 03:01 PM
- Online news:
The central bank's Monetary Policy Committee unanimously voted to keep its one-day policy rate unchanged at 2.5% at its meeting on Wednesday afternoon.
MPC secretary Paiboon Kittisrikangwan said members discussed how global economic conditions had slowed due to the slowdown in China's economy, affecting Asian exports despite some improvement in the US economy.
Growth in the Thai economy also has moderated due to a slowdown in domestic demand and in exports, with private consumption weaker as consumers seek to control rising debt.
"Weak domestic and external demand in turn caused further delay in private investment," the MPC said in a statement issued after the meeting.
"Inflationary pressure eased from softening domestic demand and lower production costs.
"The MPC judges that the slowdown in domestic demand was partly an adjustment from the previous extraordinary growth induced by government stimulus measures, and thus should resume its normal growth path in the periods ahead."
The Bank of Thailand also said that it would continue to monitor "rapidly changing global economic and financial conditions", as well as "risks to domestic financial stability".
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