Thailand Keeps Key Rate as Divided Vote Boosts Dovish Bets

  • Panel voted 5-2, with two seeking quarter-point cut to 2.25%
  • Thai PM says he disagrees with decision, but can’t interfere

Bank of Thailand governor Sethaput Suthiwart-Narueput.

Photographer: Luke Duggleby/Bloomberg
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Thailand’s central bank resisted the government’s call for cheaper borrowing costs as policymakers stood pat on Wednesday, in a decision that showed the first signs of dissent in the rate panel in over a year.

The Monetary Policy Committee voted 5-2 to maintain the one-day repurchase rate steady at a decade-high 2.50%, as predicted by all 24 economists in a Bloomberg survey. That was the first divided outcome in nine meetings, with two of the rate-setters favoring a quarter-point easing.