Post by Fletchsmile on Mar 30, 2017 22:18:20 GMT 7
no surprises there then 
=======================================
No. 10/2017
Monetary Policy Committee’s Decision 2/2017
Mr. Jaturong Jantarangs, Secretary of the Monetary Policy Committee (MPC),
announced the outcome of the meeting on 29 March 2017 as follows.
The Committee voted unanimously to maintain the policy rate at 1.50 percent.
In deliberating their policy decision, the Committee assessed that Thailand’s growth
outlook improved and that the economy would expand at a faster pace than the previous
assessment. Meanwhile, headline inflation was expected to gradually rise. Nonetheless, the
Thai economy still faced many risks, particularly on the external front. Hence, the Committee
decided to keep the policy rate on hold at this meeting in order to maintain accommodative
financial conditions which would facilitate the continuation of economic growth.
The overall growth outlook improved on the back of a clearer recovery in merchandise
exports. Meanwhile, tourism continued to recover, and public expenditure remained an
important growth driver. Private consumption and investment, however, continued to
recover at a gradual pace. Additionally, the improved growth outlook was still subject to risks
that warranted close monitoring. These included the outturns of the US economic and foreign
trade policies, financial stability concerns in China, political developments in Europe, and
problems faced by the European banking sector.
Headline inflation was expected to gradually rise, although demand-pull inflationary
pressures remained low. Meanwhile, the public’s medium-term inflation expectations
remained close to the target. Nevertheless, headline inflation might fluctuate in the nearterm
due to base effects, and would face increased downside risks from developments in
global oil prices. Core inflation slowed down recently, in part due to the increase in excise tax
last year, but was expected to gradually increase.
Overall financial conditions remained accommodative and conducive to economic
growth with ample liquidity in the financial system and low real interest rates. However, the
baht appreciated somewhat against major trading partners’ currencies over the recent period
which might not be as beneficial to the economy as it could. Under the Committee’s view,
exchange rates might experience higher volatility in the period ahead due to uncertainties on
the external front.
The Committee viewed that financial stability remained sound with sufficient cushion
against economic and financial volatilities on both domestic and external fronts. However,
there remained pockets of risks that warranted close monitoring such as the deterioration in
loan quality of some business sectors, and the search-for-yield behavior in the prolonged low
interest rate environment which might lead to the underpricing of risks.
Looking ahead, the Thai economic recovery continued to gain traction but
considerable uncertainties remained, particularly those pertaining to the global economic
recovery and to the economic and monetary policy directions of major advanced economies.
Meanwhile, demand-pull inflationary pressures remained low. Thus, the Committee viewed
that monetary policy should remain accommodative, and would stand ready to utilize an
appropriate mix of available policy tools in order to ensure that monetary conditions are
conducive to the continuation of economic growth, while ensuring financial stability.
Bank of Thailand
29 March 2017
For further information, please contact:
Monetary Policy Strategy Team 1 Tel: +66 (0) 2283 6196, 356 7872
email: MonetaryPolicyStrategyTeam1@bot.or.th
www.bot.or.th/Thai/MonetaryPolicy/Documents/PressMPC_22017_03LOGAN55.pdf
=======================================
No. 10/2017
Monetary Policy Committee’s Decision 2/2017
Mr. Jaturong Jantarangs, Secretary of the Monetary Policy Committee (MPC),
announced the outcome of the meeting on 29 March 2017 as follows.
The Committee voted unanimously to maintain the policy rate at 1.50 percent.
In deliberating their policy decision, the Committee assessed that Thailand’s growth
outlook improved and that the economy would expand at a faster pace than the previous
assessment. Meanwhile, headline inflation was expected to gradually rise. Nonetheless, the
Thai economy still faced many risks, particularly on the external front. Hence, the Committee
decided to keep the policy rate on hold at this meeting in order to maintain accommodative
financial conditions which would facilitate the continuation of economic growth.
The overall growth outlook improved on the back of a clearer recovery in merchandise
exports. Meanwhile, tourism continued to recover, and public expenditure remained an
important growth driver. Private consumption and investment, however, continued to
recover at a gradual pace. Additionally, the improved growth outlook was still subject to risks
that warranted close monitoring. These included the outturns of the US economic and foreign
trade policies, financial stability concerns in China, political developments in Europe, and
problems faced by the European banking sector.
Headline inflation was expected to gradually rise, although demand-pull inflationary
pressures remained low. Meanwhile, the public’s medium-term inflation expectations
remained close to the target. Nevertheless, headline inflation might fluctuate in the nearterm
due to base effects, and would face increased downside risks from developments in
global oil prices. Core inflation slowed down recently, in part due to the increase in excise tax
last year, but was expected to gradually increase.
Overall financial conditions remained accommodative and conducive to economic
growth with ample liquidity in the financial system and low real interest rates. However, the
baht appreciated somewhat against major trading partners’ currencies over the recent period
which might not be as beneficial to the economy as it could. Under the Committee’s view,
exchange rates might experience higher volatility in the period ahead due to uncertainties on
the external front.
The Committee viewed that financial stability remained sound with sufficient cushion
against economic and financial volatilities on both domestic and external fronts. However,
there remained pockets of risks that warranted close monitoring such as the deterioration in
loan quality of some business sectors, and the search-for-yield behavior in the prolonged low
interest rate environment which might lead to the underpricing of risks.
Looking ahead, the Thai economic recovery continued to gain traction but
considerable uncertainties remained, particularly those pertaining to the global economic
recovery and to the economic and monetary policy directions of major advanced economies.
Meanwhile, demand-pull inflationary pressures remained low. Thus, the Committee viewed
that monetary policy should remain accommodative, and would stand ready to utilize an
appropriate mix of available policy tools in order to ensure that monetary conditions are
conducive to the continuation of economic growth, while ensuring financial stability.
Bank of Thailand
29 March 2017
For further information, please contact:
Monetary Policy Strategy Team 1 Tel: +66 (0) 2283 6196, 356 7872
email: MonetaryPolicyStrategyTeam1@bot.or.th
www.bot.or.th/Thai/MonetaryPolicy/Documents/PressMPC_22017_03LOGAN55.pdf
