Thailand maintains policy rate at 2.50%

The Bank of Thailand's Monetary Policy Committee voted unanimously Wednesday to maintain the policy rate at 2.50 percent per annum. The committee noted that the Thai economy is stabilizing and should gradually recover, according to Paiboon Kittisrikangwan, secretary of the Monetary Policy Committee (MPC). "Current accommodative monetary policy remains appropriate in supporting economic recovery in the periods ahead, given uncertain global economic and financial conditions," the committee said in a statement released after the meeting. "The global economy improved gradually, though with substantial downside risks," the statement said. "While the impact of the U.S. government shutdown should be limited, failure to lift debt ceiling poses a substantial risk to global financial and economic stability." "The Thai economy grew more slowly than previously assessed, but began to stabilize and showed signs of improvement in some sectors. Exports began to recover in line with better global demand, while private consumption and investment have stabilized," it added. "The outlook points towards a gradual growth recovery, supported by accommodative financial conditions. Key downside risks stem from uncertain global economic recovery as well as a delay in fiscal disbursement especially for infrastructure projects. Inflation edged lower in line with subdued production costs and domestic demand. Household debt has decelerated somewhat, " the statement said.