Revised version effective from 8 February 2010.

Announced on 31 August 2009 Effective from 15 September 2009

Auction Schedule of Government Bond, Treasury Bills and Bank of Thailand Bond.

Under the inflation targeting framework, the Bank of Thailand implements its monetary policy by influencing short-term money market rates via the selected key policy rate, currently the 1-day repurchase rate. The Monetary Policy Committee (MPC) signals shifts in monetary policy stance through announced changes in the key policy rate. A variety of monetary policy instruments are then used to implement MPC’s interest rate decisions.

The Bank of Thailand plays an important role in promoting sound practices to encourage the development of the financial markets, in particular the money market and bond market. Such development will foster greater efficiency and competition in these markets. The well-functioning financial markets would also support The Bank of Thailand’s monetary policy implementation by enhancing efficiency of open market-typed operations. In addition, the interest rate channel of monetary policy transmission should become more effective with more developed and vibrant financial markets.

The Bank of Thailand is responsible for managing the country’s international reserves. In doing so, the Bank of Thailand has three core principles, which are security, liquidity, and return. The three core principles are applied so as to achieve the objectives of holding reserves, which include the implementation of monetary and exchange rate policy, accumulation of the country’s wealth, and for backing-up notes issuance.

To promote and support a sustainable growth of the Thai economy, the Bank of Thailand provides financial assistance to priority economic sectors through commercial banks and specialized financial institutions. They are then able to lend to their qualified customers at lower-than-normal interest rates.

The Bank of Thailand plays a key role in the debt securities market. Its main tasks are to manage government securities auctions, coordinate with selling agents of savings bonds, act as a registrar and paying agent (principle and interest rate payments), provide related services, and publish data on public sector debt securities.