KRC forecast BoT’s key interest rate unchanged

BANGKOK, Aug 12 (TNA) -- The Bank of Thailand’s Monetary Policy Committee (MPC) is expected to maintain its key policy interest rate unchanged at 1.5 per cent during its next meeting on Wednesday, according to Kasikorn Research Centre (KRC). Thailand’s general economy is so far steady while there are positive signs of recovery on the back of rising tourism industry along with disbursement of government budget, especially on basic infrastructure projects, Private investment and spending by the household sector are still inactive along with a search for higher yields are major reasons attributing to keeping the key interest rate unchanged by the MPC. Other domestic major reasons include future impact from the royal decree on migrant workers in Thailand which might affect Thailand’s economy, a dwindling in Thailand’s export, falling prices of farm products. External risk is current tensions between the US and North Korea. The MPC is expected to maintain key interest rate at the current level for a while due to strong current account surplus which is almost 10 per cent of gross domestic product, reserves of over 180 billion US dollars and high liquidity in the banking system which is almost two trillion baht. (TNA)