Financial analysts predict that the Monetary Policy Committee (MPC) will maintain the policy rate at 0.50% at Wednesday's meeting and discuss other tools for solving the business and household liquidity problem. Kasikorn Research Center (K-Research) said cutting the policy rate to near zero is unnecessary at the moment, as a lower interest rate may not appreciably help businesses and households access liquidity. "We expect that the MPC will maintain the policy rate at 0.50% until the end of this year if Thailand's economy has not significantly changed," K-Research said in a release. Wilasinee Boonmasungsong, vice-president for research at Globlex Securities, said she expects the MPC to maintain the policy rate at 0.50%, as it is already at a historic low and the policy rate is important for the debenture benchmark in the bond market. She said the central bank will have to come up with new policies to boost economic growth instead of relying on rate cuts.

Source: Bangkok Post September 22, 2020 23:37 UTC