Economics
Thai Central Bank Holds Key Rate, Cuts 2021 Growth Forecast
- Almost all economists surveyed expected bank to stay on hold
- Bank’s forecasts assume recent virus outbreak will be limited
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The Bank of Thailand kept its benchmark interest rate unchanged for a fifth straight meeting to preserve its limited policy space, while reiterating concerns about a currency rally and lowering its economic growth forecast for next year.
The central bank held the policy rate Wednesday at 0.5% in a unanimous decision, after cutting by a total of 75 basis points earlier this year, and said it stood ready to use more monetary tools if necessary. Sixteen of 17 economists in a Bloomberg survey predicted the hold, with one expecting a 25-basis point cut.