Thailand holds key interest rate for 13th consecutive session

Thailand holds key interest rate for already 13th consecutive session. So the central bank relies on the stability of the prospect of higher US interest rates that prevailed in Asian currencies and worsen the prospects of economic growth. The one-day repo rate remains at 1.5%, as members of the Monetary Policy Committee was unanimous in its decision. The decision was not surprising, as the economists predicted that the central bank in Bangkok will take precisely such a move.

Thailand’s policy rate has been unchanged since April 2015, and is just a quarter-point above the record low implemented during the global financial crisis.

Emerging markets are struggling with capital flight after last week the US Federal Reserve raised interest rates by 25 basis points. Furthermore, the US central bank predicted three increases in 2017, which is a faster rate than expected.

The danger of protectionist policies by the United States in the management of Donald Trump poses a risk to the economy of Thailand, which is export-oriented. the gross domestic product (GDP) of Thailand already growing at the weakest pace in Southeast Asia.

Headline consumer prices rose on an annual basis for an eighth straight month in November but remained benign, allowing policymakers to keep rates low and reducing the need for a cut.

This month, the Thai baht was among the most depreciated currencies in Asia, weakening 1.4% against the dollar.

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