BANGKOK, April 10 (Xinhua) -- Thailand's central bank kept its key interest rate unchanged on Wednesday, extending the pause for the third consecutive meeting despite calls from the government to lower borrowing costs to shore up the economy.
The Bank of Thailand (BOT) monetary policy committee voted 5-2 to maintain the policy rate steady at 2.50 percent, the highest level since October 2013.
"The majority of the committee deems that the current policy interest rate is conducive to safeguarding macro-financial stability and that the effectiveness of monetary policy on resolving structural impediments is limited," the BOT said in a statement.
Two committee members voted to reduce the policy rate by 0.25 percentage points to reflect the kingdom's lowered potential growth due to structural challenges and to partially alleviate borrowers' debt-servicing burden, the BOT said.
Thai Prime Minister Srettha Thavisin has repeatedly called on the central bank to ease monetary policy to boost the economy and alleviate the burden on the people.
The Thai economy is projected to expand in 2024 at a higher rate than the previous year, driven by private consumption and tourism, along with public expenditure, which is expected to accelerate in the remainder of the year, said Committee Secretary Piti Disyatat.
The BOT revised its gross domestic product growth forecast to 2.6 percent this year, from the range of 2.5 percent to 3.0 percent expected in February.
The Southeast Asian country's headline inflation in March was below the BOT target range of 1-3 percent for the 11th month.
Inflation remains subdued owing to supply factors and government subsidies, but it is expected to gradually rise towards the target range by the end of 2024, Piti told a news conference.
The central bank expects headline inflation to come in at 0.6 percent this year, compared to a February forecast of nearly 1 percent. ■