Thai central bank keeps interest rates at 2.5 percent amid technical recession
AFPBANGKOK -- Thailand's central bank on Wednesday left its benchmark interest rate unchanged at 2.5 percent, where it has been since May, after the economy slipped into a technical recession.
October 17, 2013, 12:03 am TWN
The Bank of Thailand's Monetary Policy Committee (MPC) deemed the current accommodative policy “necessary and appropriate” given the subdued state of the economy, a statement said.
“The Thai economy continued to soften in the second quarter,” it said.
“Private consumption, particularly automobiles and durable goods, slowed down due to waning stimulus from first car tax rebate measures as well as (a) higher household debt burden.”
But it added that “underlying economic fundamentals and accommodative financial conditions should lend some support to growth momentum.”
Thailand has suffered two consecutive quarterly economic contractions this year, shrinking by 0.3 percent in the three months to June compared with the previous quarter, and by 1.7 percent in the three months to March.