Thai central bank: credit growth, GDP meant no rate cut

  • Business
  • Wednesday, 08 Aug 2012

BANGKOK: Thailand's central bank said its monetary policy committee decided against cutting interest rates last month because economic growth was close to potential and monetary conditions were already accommodative, with credit growth robust.

The Bank of Thailand said in minutes of its July 25 policy meeting, published on Wednesday, that two members wanted a cut of 25 basis points, but the benchmark rate was left unchanged at 3.0 percent.

It said in the minutes that these two members were worried a weak global economy could have a bigger than expected impact on exports. They also felt support from fiscal stimulus measures might be delayed and their impact might be more muted than expected.

Underlining concerns about the threat to exports from a global slowdown, the central bank has cut its forecast for economic growth this year to 5.7 percent from 6 percent. - Reuters

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