Thailand Holds Rate as Rising Debt Curbs Room to Aid Economy

Thailand kept its benchmark interest rate unchanged for a second straight meeting as rising household debt and capital outflows reduce scope for monetary easing to revive an economy in recession.

The Bank of Thailand held its one-day bond repurchase rate at 2.5 percent, with policy committee members voting six to one for the decision, it said in Bangkok today. Nineteen of 20 economists in a Bloomberg News survey predicted the outcome, while one saw a reduction to 2.25 percent as an economic contraction last quarter added to signs of a regional weakening.