Policy Interest Rate to stay unchanged at 1.5%

BANGKOK, Feb 4 (TNA) -- The Monetary Policy Committee (MPC) of the Bank of Thailand is expected to maintain its policy interest rate at 1.5 per cent during its meeting next Wednesday, in an attempt to help recover Thailand’s sluggish economy, according to a report issued by Kasikorn Research Centre. It is expected that the MPC would keep the policy interest rate at the low level for the next several months to support the national economy, especially domestic consumption, which is still not active, the report said. Also, several external uncertainties could pose impact to global economy and Thailand’s export, it said. These risks from oversea which could impact the kingdom’s economy include a possible US trade protectionist measures against China, signs from the US that the dollar is too strong which could in turn appreciate the Thai baht and persisting worries that the US trade policy against its key trading partners which might affect capital outflows, the report said. Also, it said if the US Federal Reserve decides to adjust its rates, the action could further volatile capital outflows and eventually weaken the Thai baht again, the report added. (TNA)