BANGKOK, Jan. 16 (Xinhua) -- The Bank of Thailand (BOT) said on Tuesday that its recent decision to keep the policy rate unchanged was in line with the medium-term outlook, taking economic, inflation, and financial factors into account.
According to the BOT policy briefing, the current monetary policy rate of 2.50 percent was appropriate based on the principle that the rate should not impede economic growth or cause financial instability in the Thai economic context.
The Southeast Asian country's economy has made a moderate recovery. Consumption and employment have rebounded strongly but unevenly, while exports and production have remained lower than expected, the BOT said in a statement.
The kingdom's negative inflation in recent months resulted from temporary supply-side factors such as the government's energy subsidy scheme and the high base effect from last year, the central bank said.
The BOT expects headline inflation to stay in negative territory in the first quarter of this year. Core inflation is projected to remain positive, and medium- to long-term inflation is anticipated to be within the target range of 1 percent to 3 percent.
The central bank also expressed concern about the high level of household debt, stating that it will continue to monitor the impact of the policy rate on households and take appropriate steps to protect vulnerable borrowers. ■
