US unchanged key rate to benefit world economy

BANGKOK, October 29 (TNA) - The Ministry of Finance says that a recent decision by the US Federal Reserve (FED) to keep its key interest rate unchanged at 0–0.25 per cent should benefit global economies, including the Thai economy. Somchai Sujjapongse, Permanent Secretary for Finance, made the assessment on Thursday, in response to the US Federal Open Market Committee (FOMC)vote on October 28 (US time) to maintain the US central bank's current key interest rate in order to stimulate the US economy. Somchai explained that the US economy has not yet recovered fully and Wednesday's FED decision should be the right move. Somchai acknowledged that Thailand had earlier predicted that FED would keep its key rate intact and local parties concerned should, therefore, be able to control capital inflows and outflows, while both the Bank of Thailand (BOT) and the Finance Ministry have instruments to take care of the Thai economy efficiently. According to the senior official, the Thai economy is expected to start recovering from the final quarter of this year, with results to be seen clearly in the first quarter of next year, including rising domestic consumption and Thai exports, cushioned by the Thai government's economic stimulus measures and the recoving world economy. (TNA)