Monetary Policy Decisions: 12 March 2014
Mr. Paiboon Kittisrikangwan, Asistance Governor, Monetary Policy Group, announced the outcome of the MPC meeting today, as follows. The committee judges that downside risks to growth have risen in the wake of prolonged political situation. Core inflation has edged up, but remains subdued. Monetary policy has some scope to ease, in order to lend more support to the economy and ensure continuous financial accommodation. The MPC thus voted 4 to 3 to reduce the policy rate by 0.25 percent, from 2.25 to 2.00 percent per annum, with immediate effect. Three members voted to maintain the policy rate at 2.25 percent per annum. In their judgment, current monetary policy stance remains accommodative while the main headwinds to growth are not financial in nature. Monetary policy should be used when it is effective in supporting the economic recovery.
Monetary Policy Report : March 2014
The Monetary Policy Report is prepared quarterly by staff of the Bank of Thailand with the approval of the Monetary Policy Committee (MPC). It serves two purposes: (1) to communicate to the public the MPC's consideration and rationales for the conduct of monetary policy, and (2) to present the latest set of economic and inflation forecasts, based on which the monetary policy decisions were made.