Thailand
Thailand Economics
Thai Central Bank Holds Rates | Thai Central Bank Holds Rates |
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| Thursday, 30 August 2007 | |
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Thailand's central bank left its one-day repurchase rate unchanged at 3.25%, throwing somewhat of a surprise to analysts who had been expecting a cut. The inaction by the central bank's Monetary Policy Committee reflects a desire to avoid getting out in front of the US Federal Reserve, particularly given comments by Fed Chair man Ben Bernanke on Wednesday indicating the Fed's willingness to act to sustain the US economy. Many observers are expecting the US Fed to cut rates by 25BP at its September 18th meeting. In addition to expressing a wait and see stance regarding the US Fed's response to recent market turbulence, Bank of Thailand officials also pointed to the apparent resilience of economic growth, which remains in the Bank's targeted 4-5% range despite the stronger Baht.
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