BOT maintains key interest rate at 3%

BANGKOK, September 5 (TNA) - The Bank of Thailand or BOT has decided to keep its key interest rate unchanged at 3 per cent annually. Paibul Kittisrikangwan, Secretary to the BOT's Monetary Policy Committee (MPC), told journalists that the MPC made the decision with the majority vote of three to two to maintain the Thai central bank's annual repurchase rate at 3 per cent at its meeting on Wednesday, reasoning that domestic demand, consumption and investment have been growing well in accordance with an increase in lending by local financial institutes. The MPC acknowledged, however, that ongoing global economic problems have had more impacts on the Thai economy, as Thai exports have dropped unexpectedly and the country's export growth this year may be lower than earlier targeted. The MPC noted that it will closely monitor the global economic situation and domestic demand so that suitable and necessary measures will be implemented accordingly. According to the MPC, the Thai economy has, nonetheless, remained stable, with declining inflationary pressure. (TNA)