2020.08.0510:06:00UTC+00Thailand Central Bank Holds Rate At Record Low

Thailand's central bank retained its record low interest rates as the economy is expected to recover gradually in line with the relaxation of the coronavirus containment measures.

The Monetary Policy Committee of Bank of Thailand unanimously voted to retain the interest rate at 0.50 percent. The bank had reduced the rate by 25 basis points in May.

Although the economy is forecast to recover gradually, overall economic activities would take at least two years before returning to the pre-pandemic level, the bank said.

Policymakers noted that the financial stability was more vulnerable given the economic outlook.

The bank expressed its willingness to ease policy further. The MPC said it would stand ready to use additional appropriate monetary policy tools if necessary.

Inflation is forecast to remain negative this year. However, headline inflation would rise toward the target in 2021 in tandem with gradually rising crude oil prices and the economic recovery, the bank said.