TMB Bank expects BoT to maintain policy rate at 1.5%

BANGKOK, Jan 30 (TNA) -- TMB Bank’s Economic Analysis Centre has projected that the Bank of Thailand’s Monetary Policy Committee (MPC) would maintain its key policy rate at 1.5 per cent during its meeting next week. Several negative factors are still hovering over the Thai economy, said the Centre, adding that the MPC is likely to maintain its policy rate at 1.5 per cent during its meeting on February 3. It said that the Thai economy had improved during the last quarter of 2015 after the government disbursed budget and also implemented economic stimulus measures while private consumption also picked up due to improved confidence, said the Centre. Because of these positive factors, it is projected that the MPC would maintain its rate during the meeting next Wednesday, it said. However, Thailand’s economy is expected to confront several risky factors in future which might affect the country’s economy and interest rates, it said. They are China’s economic slowdown which would affect Thailand’s exports and an expected severe drought in Thailand which would impact income of agriculturists. The ongoing sharp decline in oil prices will also pose a significant factor for interest rate directions and if they continue declining, inflation rate could fall below the target set between 1 – 4 per cent by the Bank of Thailand and would eventually prevent the MPC from increasing the key policy rate, the Centre added. (TNA)