Thailand's key interest rate remains intact

BANGKOK, June 22 (TNA) - The Bank of Thailand (BOT) has kept its key interest rate unchanged at 1.5 per cent, reasoning that the country's inflation remains low. BOT Governor Veerathai Santiprabhob told journalists of the decision on June 21, indicating that the lower inflation than the central bank's targeted level has become no pressuring factor for any quick increase in the key interest rate. Besides, Thailand's economic growth remains uneven and a delay in raising the key interest rate is, thus, considered appropriate, as a buffer against risk factors, until the national economic growth diffuses to benefit most areas in the country. Meanwhile, former BOT deputy governor Bandid Nijathaworn, who is now President and Chief Executive Director (CEO) of the Thai Institute of Directors (IOD), said unlike other expanding economies with a high inflation, the recovering Thai economy with low inflation has made it unnecessary for a quick increase in the key interest rate by the Thai central bank presently. Bandid viewed, however, that the BOT's Monetary and Policy Committee (MPC) would raise the key interest rate in the future to be in line with the global The IOD president cautioned, however, that there are risk factors which could negatively affect the global economy, including Thailand, and need to be closely monitored, including impacts from trade protectionist measures between the United States and trading partners, if persisted, capital outflows caused by the the increased US key interest rate and the uncertain political situation in Europe. (TNA)