BOT maintains its rate @ 2.75%

The BOT held its last MPC Meeting on the 28th November 2012 and unanimously voted to maintain the 2.75% policy rate for the following reasons:

1) The world economy is more stable with recovery signs reflected in the US and Chinese economic numbers for October that have beaten market estimates, especially in the US property market, the US employment number, Chinese exports, Chinese investment and consumption. In the Eurozone, despite a remaining weakness, the economic situation has tended to improve and should continue next year.

2) The Thai economy has grown continuously, while inflation has remained flat. The MPC view is that the slowdown in the world economy has pressured just Thai exports, while the domestic demand has much improved and has offset the slowdown in exports. The MPC also expects Thai exports to recover fully in 1H13 along with a recovery in the world economy, driven by consumption and private investment.

So what?

Well I think the following as I’ve stated after each MPC meeting. Their previous rate shows, that as a central bank they move only after the fact, only have economic figures show a decrease and despite their comments regarding the global economy, unless Thailand’s economy shows a trend in either direction the BOT will keep things status quo

 

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