Banks project BoT to maintain repo rate at 1.5%

BANGKOK, September 12 (TNA) -- Thai commercial banks have projected that the Bank of Thailand (BoT)’s Monetary Policy Committee (MPC) would maintain one-day repurchase interest rate, which is benchmark for local financial market, at 1.5 per cent during a meeting next week. TMB Bank’s Economic Analysis Centre said several significant factors took place after the central bank’s MPC decision to maintain the rate at 1.5 per cent last time including massive bombing at Bangkok’s Ratchaprasong intersection in August which would pose negative impact on Thailand’s tourism industry and the recent change of Thai ministers responsible for national economic affairs. However, MPC is expected to maintain the repo rate at 1.5 per cent again on three major factors including the government-sponsored economic stimulus measures, the sharp decline of Thai baht against US dollar and a positive signs that the US Federal Reserve would hike its interest rates, said TMB Bank’s Economic Analysis Centre. The MPC is scheduled to hold its meeting next Wednesday. Kasikorn Research Centre, meanwhile, projected that the MPC would keep the repo rate unchanged at 1.5 per cent in order to maintain international economic stability which could be affected from the expected increase in interest rates by the Fed. (TNA)