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Thai central bank keeps key rate steady at 2.25 pct

BANGKOK: Thailand's central bank left its key interest rate unchanged on Wednesday, as widely expected, after delivering a surprise cut at its previous meeting in October.

The Bank of Thailand's monetary policy committee voted unanimously to keep the one-day repurchase rate at 2.25 per cent at its final meeting of 2024.

All but two of 30 economists in a Reuters poll had predicted the key rate would be held steady this week. The two outliers had expected a 25 basis-point cut on Wednesday.

The median forecast in the poll was that rates would be cut by 25 basis points by mid 2025.

The central bank on Wednesday maintained its 2024 economic growth forecast at 2.7 per cent, and kept its prediction for 2.9 per cent growth in 2025.

Southeast Asia's second-largest economy has lagged its regional peers in recent years, saddled by high household debt and borrowing costs, and weak exports. Last year's growth was 1.9 per cent.

The BOT predicted 2024 headline inflation at 0.4 per cent, down from the 0.5 per cent seen earlier, which is below the target range of 1.0 per cent to 3.0 per cent. It forecast headline inflation at 1.1 per cent in 2025, down from a previous forecast of 1.2 per cent.

Finance minister Pichai Chunhavajira on Monday said he wanted a further rate cut, reiterating his call for policy easing to support the economy.

BOT Governor Sethaput Suthiwartnarueput said earlier this month a mix of policies was needed to manage the economy as interest rates alone cannot address everything.

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