Thailand's key interest rate maintained at 3%

BANGKOK, May 2 (TNA) - The Bank of Thailand (BOT) has maintained its repurchase rate, the country's key interest rate, at 3 per cent annually to support the post-flood rebounding national economy. BOT Assistant Governor Paibool Kittisrikangwan, who oversees monetary policies, said that the move was an unanimous resolution of the BOT's Monetary Policy Committee (MPC) at its meeting on Wednesday. Paibool acknowledged that the MPC has kept monitoring Thailand's inflation closely and found that despite lower inflation last month, partly due to its high base last year and a price drop of some fresh food products, oil prices have remained high and, and a new daily minimum wage hike, could boost domestic demand faster than expected. According to the BOT assistant chief, the MPC believed it could handle the country's inflation and would be ready to change its policies to cope with updates, viewing that recently-relaxed interest rates have helped restore confidence in the local private sector and cause the national economy to recover satisfactorily and faster than expected, with the real interest rate at the end of last month contracting by 0.3 per cent, the lowest in the region, without any sign of any instability. The BOT assistant chief noted that the MPC has also found improving signs of Thailand's major economic indicators, namely a balance between capital inflows and outflows due to stable foreign exchange rates, and it will, therefore, review its forecast on the national economic growth rate in 2012 on May 11. (TNA)