Central Bank Keeps Key Interest Rate Unchanged at Decade-High Amid Government Pressure

The Thai central bank has announced that it will keep its key interest rate unchanged at a decade-high of 2.50%, marking the fourth consecutive meeting in which it has held steady. Despite government calls to ease policy, the bank feels confident in maintaining the current rate as the economy continues to improve and inflation rates are on the rise.

The Monetary Policy Committee voted 6-1 to keep the one-day repurchase rate at 2.50%, which is in line with expectations of 21 out of 24 economists surveyed by Bloomberg. In a statement, the committee noted that the current interest rate is important for maintaining macro-financial stability and is also consistent with the economy’s path towards reaching its full potential.

By keeping interest rates steady, the central bank is taking a cautious approach to economic policy, despite pressure from the government to lower rates. This decision reflects its confidence in the current state of the economy and its ability to withstand outside pressures. Moving forward, it will be important for policymakers to continue monitoring economic indicators to ensure that they are making the right decisions to support sustainable growth.