The government's plan to introduce more economic stimulus measures make it unlikely the policy interest rate will be reduced, says the TBMA. Seksun RojanamethakulThe Bank of Thailand's Monetary Policy Committee (MPC) is not expected to ease the policy rate for the remainder of this year as more government stimulus measures reduce the likelihood of further rate cuts, says the Thai Bond Market Association (TBMA). The Policy Interest Rate Expectation Index for September was at 50, unchanged from the previous month's measure. The government's plan to introduce more economic stimulus measures make it unnecessary to lower the policy interest rate, said TBMA senior executive vice-president Ariya Tiranaprakij. The MPC cut the policy rate by 0.25 percentage points to 0.5% in May, the fifth rate cut since last August, as the sputtering economy was hammered by the pandemic.

Source: Bangkok Post September 14, 2020 22:52 UTC