KONTAN.CO.ID - BANGKOK. Thailand's current policy interest rate settings were robust and can handle future risks to the economy, the central bank said on Wednesday, amid continued pressure from the government to lower borrowing costs and help jumpstart sluggish growth. Cutting rates could help lower debt in the short run but could also induce risks in the longer term, the central bank said, adding that by holding rates steady at 2.50% it created "policy optionality". Thailand's economy was still challenged by structural pressures while inflation remained low due to government measures and supply side factors, the Bank of Thailand (BOT) said.
Thai Central Bank Says Holding Key Rate Steady Creates Policy Optionality
KONTAN.CO.ID - BANGKOK. Thailand's current policy interest rate settings were robust and can handle future risks to the economy, the central bank said on Wednesday, amid continued pressure from the government to lower borrowing costs and help jumpstart sluggish growth. Cutting rates could help lower debt in the short run but could also induce risks in the longer term, the central bank said, adding that by holding rates steady at 2.50% it created "policy optionality". Thailand's economy was still challenged by structural pressures while inflation remained low due to government measures and supply side factors, the Bank of Thailand (BOT) said.