Mr. Paiboon Kittisrikangwan, Assistant Governor, Bank of Thailand annouces the outcome of the MPC meeting today, as follows. The MPC assessed that inflationary pressure remains contained, while headwinds from the global economy continue to pose risks to Thailand’s economic growth. The MPC therefore voted unanimously to reduce the policy rate by 0.25 percent, from 3.25 percent to 3.00 percent per annum, effective immediately. With private sector confidence improving but still fragile, this policy accommodation should help accelerate the return of economic activity to normal levels.

The Monetary Policy Committee (MPC) publishes the Inflation Report on a quarterly basis to emphasize transparency and accountability in the policymaking process. To enhance public understanding of policy issues, the Inflation Report provides data and information employed by the MPC in determining the direction of monetary policy. (click to read more)

The MPC considers that an inflation target for core inflation of 0.5 - 3.0 per cent is appropriate for the Thai economy. This target provides sufficient flexibility for economic growth, and at the same time will help cushion temporary economic shocks, minimizing the need for the MPC to adjust monetary policy frequently, thereby reducing short-term interest rate volatility and promoting financial stability. (click to read more)

The Thai baht effective exchange rate takes into account a basket of currencies of important trading partners and competitors - and not just the US Dollar. (click to read more)

The Monetary Policy Committee, or the MPC, is responsible for monetary policy decisions. (click to read more)